S&P Global Ratings assigned its 'A' rating to Indianapolis, Ind.'s thermal energy system (doing business as Citizens Energy Group) first-lien revenue refunding bonds, series 2016A. At the same time, we affirmed our 'A' rating on Citizens Energy Group's parity debt outstanding for its thermal energy system. The outlook is stable. The thermal energy system consists of a regulated steam division and an unregulated chilled water division. The 'A' ratings reflects what we consider to be the steam utility's continued favorable regulatory climate, and good growth of the unregulated chilled water utility. We believe a small-but-stable customer base and competitive rates further support the ratings. We believe additional credit strengths include: The strong business position of the regulated steam division, which
