Bulletin: Southwest Gas Holdings Inc. Ratings Are Not Affected By Recent Acquisition Of Construction Services Business

NEW YORK (S&P Global Ratings) Nov. 9, 2017--S&P Global Ratings said today that its ratings and outlook on Southwest Gas Holdings Inc. (SWGHI)(BBB+/Stable/--) and subsidiary Southwest Gas Corp. (BBB+/Stable/--) are not affected by SWGHI's recent announcement that it has acquired a privately held construction services business, New England Utility Constructors Inc., for about $95 million, less assumed debt. We view the size of this transaction as small relative to SWGHI's overall mix of low-risk regulated businesses. Our stable outlook continues to reflect our expectations that SWGHI's construction services business will account for no more than 25% of the company's consolidated earnings and that SWGHI's core credit ratios will consistently reflect funds from operations to debt that ranges from 23%-25%.

...NEW YORK (S&P Global Ratings) Nov. 9, 2017--S&P Global Ratings said today that its ratings and outlook on Southwest Gas Holdings Inc. (SWGHI)(###+/Stable/--) and subsidiary Southwest Gas Corp. (###+/Stable/--) are not affected by SWGHI's recent announcement that it has acquired a privately held construction services business, New England Utility Constructors Inc., for about $95 million, less assumed debt. We view the size of this transaction as small relative to SWGHI's overall mix of low-risk regulated businesses. Our stable outlook continues to reflect our expectations that SWGHI's construction services business will account for no more than 25% of the company's consolidated earnings and that SWGHI's core credit ratios will consistently reflect funds from operations to debt that ranges from 23%-25%. Only a rating committee may determine a rating action and this report does not constitute a rating action....

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