TEXT-S&P Revises ATCO Gas Australia Otlk To Pos; 'BBB' Rtgs Affirmed
-- ATCO Gas continues to strengthen its financial profile by suspending dividends and funding almost its entire capital works through internal cash flows.
-- As a result, ATCO Gas' financial metrics are likely to improve in the next 12 to 24 months to an extent that could support a rating of one-notch higher, all else being equal.
-- We have therefore revised our rating outlook to positive from stable, and affirmed the 'BBB' rating on ATCO Gas.
-- We may raise the rating if we believe ATCO Gas can sustainably achieve FFO-to-interest coverage and FFO/debt of better than 2.5x and 12% respectively.
On Jan. 11, 2013, Standard & Poor's Ratings Services revised its rating outlook on Western Australia-based gas distribution network company ATCO Gas Australia LP (ATCO Gas) to positive from stable. At the same time, we affirmed the 'BBB' ratings on the company.