Standard&Poor's Ratings Services has raised its rating on Indianapolis, Ind.'s gas utility system (GUS) bonds (senior lien) to 'AA' from 'AA-', and on Indianapolis' Gas utility distribution system (GUDS) bonds (second lien) to 'AA-' from 'A+'. At the same time, Standard&Poor's assigned its 'AA-' rating to Indianapolis' GUDS bonds, series 2013A. The outlook is stable. The upgrade reflects our view of sustained strong financial performance at the utility, which does business as Citizens Energy Group. We believe that due to the senior lien's stronger coverage and limited amount of debt outstanding, a one-notch rating distinction is warranted. In our view, gas system credit strengths include: A strong market position, with a sizable residential customer base and
