Fitch: Ferrellgas on negative watch

Fitch Ratings said it has placed Ferrellgas Partners LP's outstanding BB+ senior notes on Rating Watch negative. In addition, Ferrellgas LP's outstanding BBB senior unsecured notes and BBB rated unsecured credit facility are placed on Rating Watch negative.

Fitch said the rating action follows Monday's announcement that Ferrellgas Partners has entered into an agreement to acquire all of the outstanding common stock of Blue Rhino Corp. in a cash transaction valued at about $340 million.

The Rating Watch status reflects uncertainty associated with Ferrellgas Partners' planned acquisition funding and its impact on the company's consolidated credit profile. In addition, Fitch said it believes the proposed purchase of Blue Rhino presents a higher degree of execution risk as compared with prior acquisition activity conducted by Ferrellgas Partners.

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