Moody’s stabilizes National Grid Gas view

Moody’s Investors Service said it changed the outlook on National Grid Gas plc to stable from negative. The company will be renamed National Gas Transmission plc.

Concurrently, Moody's affirmed the company's Baa1 long-term senior unsecured ratings, backed senior unsecured Baa1 long-term rating and (P)Baa1 senior unsecured MTN program.

The agency said the rating action follows the announcements that National Grid plc concluded the sale of a 60% stake in National Gas to a consortium of long-term infrastructure investors comprised of Macquarie Asset Management and British Columbia Investment Management Corp.

“The stable outlook reflects the new financing structure of National Gas, which incorporates additional structural protections that sufficiently insulate the operating company from the weaker credit quality of the consolidated group at the current Baa1 rating level,” the agency said in a statement.

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