Debt ratings affirmed by two agencies

Wednesday, Jan. 26, 2000 | 12:25 p.m.

Two credit agencies affirmed their ratings on Southwest Gas Corp. of Las Vegas following the termination of a merger pact with ONEOK Inc.

Moody's Investors Service confirmed its Baa2 rating on the company. That rating had been under review by Moody's since August because of the stronger credit rating of ONEOK. Moody's said Southwest's rating outlook is stable, but noted the company's rating could be impacted by future merger developments and financings.

Moody's also noted that the company faced risk from a racketeering lawsuit by Southern Union Co. pending against Southwest.

Separately, Duff & Phelps said it removed Southwest from its rating watch, where its status was "uncertain." The agency affirmed its "'BBB" rating on Southwest's debt.

Duff & Phelps said Southwest's credit profile was "solid in its rating category reflecting improved financial fundamentals and a relatively low business risk profile." The agency noted that the company's credit rating still had "significant event risk," given the likelihood that Southwest will be involved in another merger transaction in the near term.