S&P keeps Enogex on watch

Standard & Poor's said its BBB+ corporate credit rating and other ratings on Enogex Inc. remain on CreditWatch with negative implications, where they were placed on June 28, 2007.

Enogex parent OGE Energy Corp. continues to affirm its intention to restructure Enogex through forming a master limited partnership despite delays in an initial public offering of common units in the newly formed partnership. The agency said the CreditWatch listing reflects the general negative effect on credit quality resulting from the MLP structure and OGE Energy's possible weakening incentive to support Enogex in case of financial stress.

The ratings on Enogex post-restructuring will likely still carry some implicit support from OGE Energy, given the strategic nature of the Enogex assets to OGE Energy, the agency said. In resolving the CreditWatch listing post-transaction, S&P expects the ratings to remain investment grade.

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