Folsom,
NJ – South
Jersey Gas announced today that Moody’s Investors
Service has upgraded its senior secured rating to A3 from
Baa1, with a positive outlook. SJG, a subsidiary of South
Jersey Industries (NYSE:SJI), is a regulated utility providing
natural gas service to over 340,000 residential, commercial
and industrial customers in the seven southernmost counties
of New Jersey.
Moody’s Vice President Edward Tan attributed the
upgrade to “South Jersey Gas’ consistent financial
performance for the last several years that were strong for
its Baa1 rating. The rating is further supported by a reasonably
supportive regulatory environment and a stronger liquidity
profile with less reliance on uncommitted lines of credit.”
Moody’s further stated that “South Jersey Gas
is expected to maintain its credit metrics over the next
few years despite the recently announced $100 million infrastructure
investment plan in support of the New Jersey Governor’s
economic stimulus plan. South Jersey Gas’ agreement
to file a rate case in 2010 as part of the plan is viewed
positively given the regulatory supportiveness gas utilities
have been experiencing in New Jersey in recent years. Moody’s
anticipates that the New Jersey Board of Public Utilities
will extend the Conservation Incentive Program, a pilot conservation
and revenue decoupling mechanism scheduled to end later this
year, in one form or another.”
Edward Graham, SJI Chairman and CEO commented, “In
this challenging economic environment, we are extremely pleased
that Moody’s has recognized the strength of SJG’s
financial performance and condition with a ratings upgrade.
Moody’s action can only be supportive to our recently
announced infrastructure and conservation programs that will
advance Governor Corzine’s Economic Stimulus Plan.
Our goal is to continue to provide safe, reliable service
to our ratepayers while creating jobs and maintaining financial
stability.”
South Jersey Industries (NYSE: SJI) is an energy
services holding company. A member of the KLD Global Climate
100 Index, SJI offers solutions to global warming through
renewable energy, clean technology and efficiency. South
Jersey Gas, one of the fastest growing natural gas utilities
in the nation, strongly advocates energy efficiency while
safely and reliably delivering natural gas in southern New
Jersey. South Jersey Energy Solutions, the parent of SJI’s
non-regulated businesses, provides innovative, environmentally
friendly energy solutions that help customers control energy
costs. South Jersey Energy acquires and markets natural gas
and electricity for retail customers and offers energy-related
services. Marina Energy develops and operates on-site energy
projects. South Jersey Resources Group provides wholesale
commodity marketing and risk management services. South Jersey
Energy Service Plus installs, maintains and services residential
and commercial heating, air conditioning and water heating
systems; services appliances; installs solar systems; provides
plumbing services and performs energy audits. For more information
about SJI and its subsidiaries, visit http://www.sjindustries.com.
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