S&P affirms Energy Transfer

Standard & Poor's said it affirmed the ratings on Energy Transfer Partners LP (BBB-/stable) after the company and Regency Energy Partners LP announced they have formed a joint venture to buy LDH Energy Assets Holdings LLC's assets for $1.925 billion.

The outlook is stable.

This transaction does not materially change the view of Energy Transfer's credit profile, S&P said. The acquisition will provide the company a new platform in the growing natural gas liquids market.

The ratings on Energy Transfer reflect the strong competitive position of its energy pipeline, processing and storage businesses and the stability of the partnership's mostly fee-based cash flows, the agency said.

The ratings consider its intrastate transportation business's recent weak performance and high financial leverage, which includes the debt at its general partner Energy Transfer Equity LP, the agency added.

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