TEXT-S&P release on Southwest Gas Corp

(The following statement was released by the ratings agency)

Sept 8 - Standard & Poor's Ratings Services affirmed its 'BBB-' rating on Southwest Gas Corp (SWX.N). The outlook is positive and reflects our expectation that the company's improved financial performance, coupled with an improved business risk profile, is likely to lead to a higher rating over the near term. Improvement in the company's business risk profile is largely dependent on its pending rate case in Arizona. If cost recovery mechanisms and rate design are granted in the rate case, we could reevaluate the business risk profile to excellent from strong, which could lead to an upgrade.

The ratings on Las Vegas-based Southwest Gas reflect its strong business risk profile and aggressive financial risk profile. The ratings are based on the consolidated credit profile of its natural gas operations segment (87% of operating income in 2007) and its construction services business, Northern Pipeline Construction Co. (13%). (New York Ratings Team)