S&P lifts Florida Gas Transmission

S&P said it upgraded its issuer credit rating on Florida Gas Transmission Co. LLC to BBB+ from BBB, while also upgrading the senior unsecured issue-level rating to BBB+ from BBB. The outlook is stable.

“We expect debt/EBITDA at FGT to remain between 3.5x and 4x given the 65% debt/capital covenant incorporated in the $500 million term loan at its parent, Citrus Corp., that will effectively limit its ability to increase debt,” S&P said in a news release.

“We still consider the company to have relatively low and stable business risk given its high utilization and long-term contracts with reservation fees that insulate the pipeline from volume and commodity risk.”

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