S&P affirms Enbridge; outlook stable

Standard & Poor's said it affirmed its BBB corporate credit rating on Enbridge Energy Partners LP and operating subsidiary Enbridge Energy LP and revised the outlook to stable from negative.

The agency said it also raised the company's short-term rating to A-2 from A-3 based on its notching criteria for commercial paper.

The rating action follows Enbridge Energy's announcement that it has approved a joint funding agreement with parent Enbridge Inc. (A-/stable), under which Enbridge will effectively fund two-thirds of the $1.2 billion U.S. segment of the Alberta Clipper crude oil pipeline project, the agency said.

S&P added that it believes the joint funding arrangement substantially reduces Enbridge Energy's 2009 debt and equity funding requirements to a more manageable level, which is likely achievable through the capital markets or noncore assets sales.

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