Research Update: Southwest Gas Holdings Inc. Outlook Revised To Negative From Stable On Linetec Acquisition; 'BBB+' Rating Affirmed

Southwest Gas Holdings Inc. (SWGHI) announced it has reached a definitive agreement to acquire Linetec Services LLC for about $336 million, including working capital and fees. SWGHI is acquiring an 80% ownership with the possibility of adding the remainder over the next five years. It intends to finance the acquisition with a combination of approximately $250 million of equity and about $95 million in debt We are revising our rating outlooks on SWGHI and subsidiary Southwest Gas Corp. (SWGC) to negative from stable. At the same time, we are affirming our ratings on both, including our 'BBB+' issuer credit ratings. The negative outlook reflects a modest weakening of business risk and weaker consolidated financial measures for SWGHI and our expectation

...+ Southwest Gas Holdings Inc. (SWGHI) announced it has reached a definitive agreement to acquire Linetec Services LLC for about $336 million, including working capital and fees. SWGHI is acquiring an 80% ownership with the possibility of adding the remainder over the next five years. It intends to finance the acquisition with a combination of approximately $250 million of equity and about $95 million in debt + We are revising our rating outlooks on SWGHI and subsidiary Southwest Gas Corp. (SWGC) to negative from stable. At the same time, we are affirming our ratings on both, including our '###+' issuer credit ratings. + The negative outlook reflects a modest weakening of business risk and weaker consolidated financial measures for SWGHI and our expectation that financial measures will remain near our downgrade threshold over the next two years....

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