S&P Global Ratings assigned its 'AA' long-term rating to Indianapolis' gas utility distribution system, second-lien revenue refunding bonds, series 2024A, with an estimated par amount of $47 million. At the same time, we affirmed our 'AA' long-term rating on Indianapolis' parity debt issued for the natural gas utility distribution system (GUDS, or the natural gas utility). The natural gas utility is one arm of the city's utility system, which does business as Citizens Energy Group (Citizens). The outlook is stable. Net revenue of the natural gas utility secures the debt. GUDS will use the series 2024A bond proceeds to refund the natural gas utility's series 2013A bonds. At fiscal year-end 2023, GUDS had approximately $121 million in debt principal outstanding.
