Fitch rates Energy Transfer notes BBB-

Fitch Ratings said it assigned BBB- ratings to Energy Transfer Partners, LP's $350 million 8.5% senior notes due 2014 and $650 million 9% senior notes due 2019.

The outlook is stable.

Note proceeds will be used to reduce outstanding revolving credit borrowings and for growth capital expenditures and/or capital contributions for announced projects.

The agency said Energy Transfer's ratings and stable outlook reflect 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 contractually supported pipeline expansions.

The credit measures are consistent with the company's peer group of investment-grade master limited partnerships, but Fitch said a substantial capital spending program directed mostly toward pipeline expansion projects will result in increased debt leverage until the new projects generate operating returns.

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