Fitch cuts MDU Resources debt, rates unit BBB+

Fitch Ratings said it assigned a long-term issuer default rating of BBB+ and a senior unsecured debt instrument rating of A- to Montana-Dakota Utilities Co.

In addition, Fitch affirmed MDU Resources Group, Inc.'s long-term issuer default rating at BBB+ and downgraded the senior unsecured debt rating to BBB+ from A-.

The downgrade reflects Fitch's standard corporate notching policy, the agency said.

The ratings of MDU's wholly-owned subsidiaries Cascade Natural Gas Corp. and Centennial Energy Holdings, Inc. were affirmed.

The outlook is stable for all four entities.

“The rating actions follow MDU's reorganization into a parent holding company structure effective Jan. 1, 2019,” the agency said in a news release.

“Under the new holdco structure, Montana-Dakota and Great Plains Natural Gas Co. become indirect wholly-owned subsidiaries of MDU, and MDU's legacy divisional utility debt is transferred to Montana-Dakota.”

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