Southwest Gas Holdings Inc. Ratings Placed On CreditWatch Developing On Planned Separation Of Centuri Group Inc.

Southwest Gas Holdings Inc. (SWX) recently announced its intention to separate from its utility infrastructure services business under subsidiary Centuri Group Inc. The separation of this higher-risk business could lower consolidated business risk, but its credit profile remains strained as it has yet to complete its planned large equity issuance to partially repay the short-term debt incurred in acquiring Questar Pipeline. We placed all our long-term ratings on SWX, Southwest Gas Corp. (SWG), and Dominion Energy Questar Pipeline LLC, including the 'BBB-' issuer credit rating on SWX and Questar Pipeline, our 'BBB-' issue-level rating on Questar Pipeline's senior unsecured debt, our 'BBB' issuer credit rating on SWG, and our 'BBB' issue-level rating on SWG's senior unsecured debt on CreditWatch with

...March 2, 2022 - Southwest Gas Holdings Inc. (SWX) recently announced its intention to separate from its utility infrastructure services business under subsidiary Centuri Group Inc. - The separation of this higher-risk business could lower consolidated business risk, but its credit profile remains strained as it has yet to complete its planned large equity issuance to partially repay the short-term debt incurred in acquiring Questar Pipeline. - We placed all our long-term ratings on SWX, Southwest Gas Corp. (SWG), and Dominion Energy Questar Pipeline LLC, including the '###-' issuer credit rating on SWX and Questar Pipeline, our '###-' issue-level rating on Questar Pipeline's senior unsecured debt, our '###' issuer credit rating on SWG, and our '###' issue-level rating on SWG's senior unsecured debt on CreditWatch with developing implications. - The CreditWatch placement with developing implications reflects the planned separation of Centuri and the significant uncertainty around the separation...

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