Moody’s changes Central Hudson Gas view

Moody's Investors Service said it affirmed the ratings of Central Hudson Gas & Electric, including the A2 senior unsecured and issuer rating, and changed the outlook to negative from stable.

Following the settlement of its latest general rate case in June, the company is now poised to meaningfully increase its capital expenditures, the agency said.

The more ambitious capital investment plan coincides with the passage of federal tax reform, which is creating operating cash flow headwinds for the company, Moody’s said.

"CHG&E's negative outlook reflects our expectation that the company's financial ratios will deteriorate as a result of its plan to go forward with a higher capital expenditure program at a time when it is grappling with lower operating cash flow generation resulting from the passage of federal tax reform,” Lesley Ritter, assistant vice president and analyst at Moody’s, said in a news release.

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