S&P: Laclede on negative watch

Standard & Poor's said it placed the A corporate credit ratings on the Laclede Group Inc. and subsidiary Laclede Gas on CreditWatch with negative implications.

The agency also said it also placed the A+ senior secured debt and A-1 commercial-paper ratings on Laclede Gas on CreditWatch with negative implications.

Following a review of the company's financial policy, the agency said it believes there is a greater likelihood of a downgrade following its acquisition of Missouri Gas Energy.

Although the company plans to use a mix of debt and equity to fund the transaction, S&P said it expects its financial condition to weaken.

In addition, the company's business risk profile is considered marginally excellent due to its acquisitive strategy and investment in riskier unregulated operations, the agency said.

The CreditWatch status reflects the potential for lower ratings from weakening financial measures due to the acquisition of Missouri Gas, S&P said.

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