TEXT-S&P: Tokyo Gas assigned 'A-1+' short-term rating
(The following statement was released by the rating agency)
Sept 28 - Standard & Poor's Ratings Services today assigned an 'A-1+' short-term corporate credit rating to Japan-based regulated natural gas producer and distributor Tokyo Gas Co. Ltd. (AA-/Negative/A-1+). At the same time, we affirmed our 'AA-' long-term rating on the company. The outlook remains negative.
We base our assignment of a short-term rating on the link between the long- and short-term ratings on an issuer, together with our assessment of its liquidity. We take the view that Tokyo Gas has "adequate" sources of liquidity. According to our criteria, the combination of an 'AA-' long-term corporate credit rating and "adequate" liquidity produce an 'A-1+' short-term rating.
The ratings on Tokyo Gas reflect Standard & Poor's Ratings Services' assessment that the stand-alone credit profile (SACP) on the company is 'aa-' and that the ratings incorporate no upward adjustment in reflection of extraordinary government support. We have incorporated the supportive ongoing regulatory framework in Japan into our analysis of the SACP for the company.
Tokyo Gas has adequate sources of liquidity, in our view. We expect the company's liquidity sources (including cash, FFO, and credit facilities) to exceed 1.2x uses over the next year; Debt maturities for the same period are within cash and cash equivalents. The company has strong relationships with its main banks, in our view, and good standing in bond markets.
RELATED CRITERIA AND RESEARCH
Methodology: Short-Term/Long-Term Ratings Linkage Criteria For Corporate And Sovereign Issuers, May 15, 2012
General Criteria: Principles Of Credit Ratings, Feb 16, 2011 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
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