S&P: Central Hudson on watch

Standard & Poor's said it placed Central Hudson Gas & Electric Corp.'s A corporate credit rating on CreditWatch with negative implications.

Central Hudson is owned by CH Energy Group Inc.

The action follows Fortis Inc.'s plans to acquire CH Energy for about $1.5 billion, S&P said.

The parties aim to complete the merger within 12 months, with approvals needed from shareholders and authorities.

The ratings reflect a credit-supportive regulatory environment, the company's small service territory with modest customer growth and lack of geographic or operating diversity and an above-average competitive position, S&P said.

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