S&P cuts Boardwalk Pipeline

Standard & Poor's said it lowered the corporate credit rating on Boardwalk Pipeline Partners LP to BBB from BBB+ and revised the outlook to stable.

The rating action reflects S&P's view of increased operating risk during the construction build out and its

view that Boardwalk's longer-term financial profile and credit-protection measures are commensurate with a BBB rating.

The agency said that the financial effect of the cost increases related to the project expansions is expected to be minimal, given Boardwalk's announcement to sell $700 million of new equity to Loews Corp. (A/stable), which owns about 68% of Boardwalk and controls its general partner.

S&P noted that it considers Loews's significant investment as supportive of the credit and have factored this support into its rating, adding that the rating on Boardwalk is based on a strong business risk profile that benefits from access to Gulf South Pipeline Co. LP supplies, growing markets and stable and predictable operating cash flows.

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