Ratings

Moody’s Investors Service on Wednesday downgraded the long-term debt ratings of the Royal Dutch/Shell Group of companies to “Aa1” from “Aaa,” following a review that began when the oil giant announced a 20% cut to its proven oil and gas reserves.

Moody’s Investors Service placed Gas Transmission Northwest Corp.’s (GTN) B2 senior unsecured ratings under review for possible upgrade after the company on Wednesday announced its proposed sale to TransCanada Corp. for $1.5 billion, including assumption of $500 million in debt. TransCanada PipeLines Ltd., which has agreed to acquire GTN from bankrupt National Energy & Gas Transmission Inc., holds an A2 senior unsecured rating. GTN is not in bankruptcy, but the sale will have to be approved by the bankruptcy court and by federal regulators. “NEGT’s bankruptcy proceedings — the court-sanctioned auction process and the approval of the NEGT plan of reorganization — lend uncertainties, including whether another bidder will prevail in the auction, what the final sale price will be, and if and when the requisite approvals will be granted,” Moody’s noted. “The conclusion of the review will depend on the timing of these processes, which are expected to extend into this summer at the earliest.”

Saying it boosts liquidity, Standard & Poor’s Ratings Services gave a thumbs up to San Jose, CA-based Calpine Corp.’s decision last Thursday to create another Canadian natural gas trust surrounding a chunk of its oil/natural gas holdings in Western Canada. S&P said that Calpine expected to receive about $125 million in net proceeds from selling units in the trust, for which it will retain 25% ownership and a right to buy all of the gas at market prices.

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.

Although it acknowledged political and regulatory factors that continue to be uncertain, Standard and Poor’s Ratings Services reported last Thursday sighting “signs of life” in California’s private-sector utilities. The uncertainties that still cloud the state’s energy picture go well beyond the outcome of the proposed new settlement plan for bankruptcy-bound Pacific Gas and Electric Co., according to S&P brief analysis, “California’s Utilities: Another Step Forward?”

Standard & Poor’s Ratings Service (S&P) on Friday affirmed its “B+ long-term corporate credit rating on The Williams Cos. Inc., and removed the company and its subsidiaries from CreditWatch with negative implications, where they were placed July 23, 2002. S&P kept its negative outlook on the company.

Fitch Ratings analysts believe clearing services in the wholesale natural gas and power markets could help restore the health of the energy trading business. But some significant hurdles remain and there probably will be limited progress this year.

Fitch Ratings analysts believe clearing services in the wholesale natural gas and power markets could help restore the health of the energy trading business. But some significant hurdles remain and there probably will be limited progress this year.

Moody’s Investors Service downgraded the ratings of Port Huron, MI-based gas utility company SEMCO Energy Inc. to Ba2 from Baa3 and said it was continuing a review for possible further downgrade because of the company’s “very high leverage, weak capitalization, low profitability and cash flow relative to its debt and refinancing risk.” About $534 million in debt was affected.