Columbia Gas under financial scrutiny after gas disaster
Its share price fell 11.7 percent to close at
And, on Thursday,
Despite investors' jitters, analysts familiar with the energy industry say
"It's a solid company with an investment-grade rating, and their operations in other locations are doing well," said
Fishman estimates a
The utilities have been spending
"They'll accelerate those capital expenditures, which will give them increased earnings," he said. "In the end it will be a wash for the company."
Based in northwest
Its subsidiary
Energy experts point out that
"It's a huge company with more than 60,000 miles of distribution pipeline," said
She said the long-term viability of
"It's difficult to imagine how they will survive moving forward," she said. "I'm not sure they will ever recover trust and reputation from the local communities."
"We know this has damaged the confidence and trust in our company and what we do," he said recently. "Our full commitment is restoring that trust and that confidence."
To date at least two ratings agencies have raised red flags that the gas explosions could affect the finances -- and debt rating -- of
Meanwhile, Standard and Poor's revised its outlook for the energy company and its subsidiary, from stable to negative, citing the fires and explosions.
The agencies' reports could foreshadow changes in bond ratings for the utility down the road. Lower ratings would make borrowing more difficult and expensive for the
They also generally mean higher interest charges, because the risk for investors is perceived to be greater.
Meanwhile,
Speaking to reporters on Friday,
"
___
(c)2018 The Eagle-Tribune (North Andover, Mass.)
Visit The Eagle-Tribune (North Andover, Mass.) at www.eagletribune.com
Distributed by Tribune Content Agency, LLC.
Sen. Rubio Surveys Hurricane Michael Damage in Florida Panhandle
Vibra Health Plan Announces 2019 Medicare Advantage PPO Plans, Providing Personalized, Affordable Coverage in 31 Pennsylvania Counties
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News