Moody's rates Energy Transfer notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Energy Transfer Partners, LP's proposed senior notes. The offering size is expected to be no less than $1 billion.

The outlook is stable.

The note proceeds will reduce revolving credit borrowings that were used to acquire its 70% stake in LDH Energy Asset Holdings LLC, which was completed in May. Proceeds will also be used to fund capital spending for growth projects in 2011.

Energy Transfer's stable outlook reflects the mix of equity and debt to fund the LDH acquisition and the increased scale and diversification and more stable fee-based income profile provided by the assets, the agency said.

The ratings consider the company is continuing on an aggressive growth path to enhance the LDH operations, the agency added.

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