S&P rates Energy Transfer notes BBB-

Standard & Poor's said it assigned a BBB- rating to Energy Transfer Partners LP's issuance of $1 billion of senior notes, broken down into a $350 million issue due 2014 and a $650 million issue due 2019. The BBB- corporate credit rating was affirmed.

The outlook is stable.

Note proceeds will be used to repay borrowings under the company's revolving credit facility and for general corporate purposes.

The agency said the debt issuance provides material near-term support to Energy Transfer's liquidity position as it will help to reduce short-term borrowings, meet capital spending commitments and maintain at least $1 billion of revolving credit facility capacity throughout 2009.

The debt issuance will, however, suppress credit metrics in the near term until cash flows from projects recently placed in service come on line and additional equity support provides more balanced funding of the capital spending program, S&P said.

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