Fitch upgrades Mountaineer Gas

Fitch Ratings said it raised Mountaineer Gas Co.’s issuer default rating to BBB- from BB+ and the senior unsecured debt rating to BBB from BBB-/RR4 following the close of the previously announced acquisition by unrated UGI Corp. The agency also removed these ratings from rating watch positive and assigned a stable outlook.

“Fitch views UGI Corp.'s acquisition of MGC as a credit positive for MGC. MGC benefits by no longer having private equity ownership, which Fitch viewed as being less supportive of credit quality. MGC should also benefit operationally from joining a larger natural gas distribution utility family. The acquisition aligns MGC's interests with those of UGI Corp. in regards to natural gas growth investments, particularly MGC's pipe replacement and expansion program,” the agency said in a press release.

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