Standard&Poor's Ratings Services has affirmed its 'AA-' rating on Indianapolis' gas utility system (GUS) bonds, and its 'A+' rating on Indianapolis' gas utility distribution system (GUDS) bonds. The outlook is stable. In our view, gas system credit strengths include: A strong market position, with a sizable residential customer base and a diverse service area economy; Stable operations, with adequate storage and pipeline access to key regional natural gas markets; Liquidity levels, including lines of credit, that provide good financial cushion; Competitive rates and limited exposure to retail competition; and A favorable rate design that includes a monthly reset gas cost adjustment and mechanisms that account for weather variation. We believe offsetting considerations include: Declining gas use per customer;
