S&P rates NiSource preferreds BBB-

S&P said it assigned its BBB- issue-level rating to NiSource Inc.'s $400 million series 2018A fixed-rate reset cumulative redeemable perpetual preferred stock.

All existing ratings are unchanged.

NiSource intends to use the net proceeds to refinance outstanding long-term debt issuances.

The agency said it classifies the securities as hybrid securities that have intermediate equity credit (50%).

“We rate the securities two notches below our BBB+ issuer credit rating on NiSource to reflect the instrument's subordination and the company's ability to defer interest payments,” S&P said in a news release.

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