Fitch gives BBB+ Columbia Pipelines

Fitch Ratings said it assigned BBB+ long-term issuer default and senior unsecured ratings to Columbia Pipeline Holding Co. LLC and its subsidiary Columbia Pipeline Operating Co. LLC (CPOC). The outlook is stable.

The senior unsecured rating is for two sets of financings. First, the agency rated a planned offering of debentures BBB+. Additionally, outstanding debentures that have recently been transferred to CPOC are also rated BBB+ (4.5% notes due 2025 and 5.8% notes due 2045; the migrating notes). Before the transfer of these notes, and the planned offering, these notes were rated A-; accordingly, the migrating notes are downgraded, Fitch said.

“The ratings and outlook reflect the long-term contracted take-or-pay contracts, supportive regulation by the U.S. Federal Energy Regulatory Commission (FERC), and leverage that is appropriate for the rating,” Fitch said in a statement.

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