S&P affirms Energy Transfer

Standard & Poor's said it affirmed its BBB- ratings on Energy Transfer Partners LP following the announcement that it will form a joint venture company with OGE Energy Corp. named ETP Enogex Partners LLC.

The outlook is stable.

The agency said that Energy Transfer and OGE will each contribute ownership interests in certain midstream subsidiaries to ETP Enogex in exchange for 50% interests in the general partnership and limited partnership of ETP Enogex.

As a result of the transaction, Energy Transfer's financial metrics are expected to improve significantly primarily due to an expected reduction in short-term borrowings related to Transwestern and the contribution of Transwestern and its debt obligations to ETP Enogex, S&P noted.

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