US regulated gas and water utilities’ credit quality should remain steady in 2011: That’s the opinion credit rater Standard & Poor’s issued this month, even as the threat of an unprecedented default by the US government looms ever larger. In contrast to its sanguine view for essential services, S&P believes “failure to raise the debt ceiling would cause significant and long-lasting financial and economic disruptions.” That’s essentially the same point of view stated by financial institutions and economists across the board

As an owner of dividend-paying gas and water utilities--both personally and in my Utility Forecaster model portfolios--I’m encouraged that Wall Street considers these companies as safe havens, particularly with so much uncertainty in the broader economy and investment markets. And the best companies have been taking advantage of the high regard in which investors hold them now.

Source: Investing Daily

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