Fitch: Energy Transfer view stable

Fitch Ratings said it revised Energy Transfer Partners, LP's outlook to stable from positive. Fitch rates the company at long-term issuer default rating BBB- and senior unsecured debt BBB-.

According to the agency, the outlook revision results from legal proceedings against the company by the Federal Energy Regulatory Commission and the U.S. Commodities Futures Trading Commission, which could result in material civil penalties and may have a negative overhang on ETP's operations until resolved. ETP has publicly denied the government charges.

The BBB- rating reflects the increasing scale, scope and diversity of its operations, strong quantitative credit measures, a conservative distribution policy, a favorable near-term regional natural gas supply position from expanding Barnett Shale and Bossier Sands development, and the expected benefits of ongoing pipeline expansions, Fitch said.

The ratings also consider the structural subordination of the notes to $750 million of combined debt at Transwestern and Heritage, the financial exposure to changes in commodity price and supply and demand conditions across its operations and the structural relationships between affiliated companies, the agency said.

Fitch said the company expects its debt-to-EBITDA ratio for the combined company's fiscal year 2007 to be 3.3 times.

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