S&P rates El Paso Pipeline notes BB

Standard & Poor's said it assigned a BB senior unsecured debt rating to El Paso Pipeline Partners Operating Co. LLC's $750 million senior unsecured notes of varying maturities with a recovery rating of 3, indicating expectation of 50% to 70% recovery.

The BB long-term corporate credit rating on El Paso Pipeline Partners LP is tied to the rating on El Paso Corp.

The outlook is stable.

Proceeds will be used to fund the acquisition of the remaining 49% interests in both Southern LNG Co. LLC and El Paso Elba Express Co. LLC. and to purchase an additional 15% interest in Southern Natural Gas Co. from its parent El Paso Corp., to repay the Elba Express project financing term loan and to reduce outstanding borrowings under its revolving credit facility.

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