Moody's alters Scotland Gas view to stable

Moody's Investors Service said it changed the outlook for Scotland Gas Networks plc and Southern Gas Networks plc to stable from negative. Concurrently, Moody's affirmed the companies' Baa1 senior unsecured and long-term issuer ratings, and (P)Baa1 senior unsecured MTN program ratings. Moody's said it did not act on the companies' backed A2 ratings.

The rating action follows the redetermination of the companies’ regulatory settlement for the current five-year regulatory period, RIIO-GD2, and measures taken by the SGN group to improve interest-coverage metrics of both entities, the agency said.

“The change in outlook to stable reflects Moody's expectation that Scotland GN and Southern GN will maintain financial metrics over the current regulatory period, RIIO-GD2 - which commenced on April 1, 2021 and runs until March 31, 2026, commensurate with the current Baa1 rating level,” the agency said in a press release.

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