OREANDA-NEWS. Fitch Ratings has assigned National Grid Gas Finance plc's (NGGF) GBP3bn senior unsecured notes and EUR750m senior unsecured notes final ratings of 'A'. Fitch has simultaneously placed the ratings on Rating Watch Negative (RWN).

The final ratings reflect that the GBP3bn and EUR750m unsecured notes issued under MTN programme are initially guaranteed by National Grid Gas plc (NGG, Long-Term Issuer Default Rating (IDR) A-/Stable, senior unsecured rating A). The final terms and conditions of the programme state that the initial guarantor will be substituted by the successor guarantor, National Grid Gas Distribution Limited (NGGD), once NGG's gas distribution business has been transferred to NGGD, which is expected in the next few weeks.

The RWN reflects the scope for downgrading the instrument rating by one notch upon guarantor substitution as we assess NGGD's credit quality to be below that of NGG, based on an expected template gearing of net debt-to-regulatory asset value (RAV) at 65%.

For further details including Key Rating Drivers, Rating Sensitivities and Key Assumptions see the rating action commentary published on 5 September 2016 (Fitch Rates National Grid Gas Finance plc's Future Notes 'A(EXP)'/RWN).

FULL LIST OF RATING ACTIONS

National Grid Gas Finance plc

--GBP650m senior unsecured notes due on 22 September 2021 assigned 'A', placed on RWN

--GBP850m senior unsecured notes due on 22 September 2028 assigned 'A', placed on RWN

--GBP700m senior unsecured notes due on 22 September 2038 assigned 'A', placed on RWN

--GBP800m senior unsecured notes due on 22 September 2046 assigned 'A', placed on RWN

--EUR750m senior unsecured notes due on 22 September 2024 assigned 'A', placed on RWN