Standard & Poor’s Ratings Services (S&P) said Friday that it has affirmed its ‘A’ corporate credit rating on AGL Resources Inc. and its subsidiaries based on the organization’s solid operating performance, continued conservative financial management and maintenance of its current level of business risk.

Atlanta, Ga.-based AGL Resources currently has about $1.1 billion in debt outstanding. S&P added that the outlook is stable.

“We expect that the predictable cash flows from the regulated businesses will support the rating despite the increased risk from the non-regulated operations and the exposure to the competitive retail gas marketing business in Georgia,” said Daniel Parker, analyst with S&P. “Financial metrics are expected to remain within the rating category parameters.”

AGL Resources’ unit Atlanta Gas Light transports gas in Georgia’s retail market, which is completely deregulated. Instead of marketing natural gas to its 1.4 million customers as it did before deregulation, the company now sells to 10 certified marketers in the state.

Despite its affirmation of the company’s credit rating, S&P noted that the business risk profile has modestly increased as the unbundled natural gas market in Georgia creates a credit concentration issue for Atlanta Gas Light, and also creates competition for its retail gas marketing company, SouthStar. In addition, S&P said the higher-risk, nonregulated operations have become a more important part of AGL Resources’ consolidated business. “These businesses require management focus and expose the company to increased market, credit, and operational risk,” Parker said in a note.

The analyst said the current rating on AGL Resources reflects the above average consolidated business profile and strong financial profile.

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