Southeast Gas was awarded an A2 issuer rating by Moody’s Investor Service Dec. 15, 2022.
Given the company’s low operating costs and low leverage, the A2 rating is indicative of the company’s cost recovery and fixed obligation charge coverage levels.
Southeast Gas’ future capital requirements are minimal. These are mostly for system improvements. This should allow the company to maintain its low leverage profile. This rating is also reflective of the company’s diversification in gas supply, robust hedging policies and lower fuel cost volatility.
Southeast Gas Director of Finance and Administration and Chief Financial Officer Lori Messick said, “This is great news for Southeast Gas and all our stakeholders.” “Our A2 rating allows us to secure the best rates for future projects and could lead to savings of thousands of dollars over our entire life-cycle of financing.”
Southeast Gas was established in 1952 by 14 cities from southeast Alabama. The company supplies natural gas services to over 31,000 residential, industrial, and commercial customers in 35 communities located in the southeast part of the state. Southeast Gas operates 600 miles of transmission and 1,694 miles distribution lines.
The article Southeast Gas gets Moody’s A2 rating originally appeared on The AndalusiaStar-News.
