S&P cuts Express Pipeline notes

Standard & Poor's said it lowered the rating on Express Pipeline Partnership's $110 million senior secured notes to BBB from BBB+, and affirmed the A- ratings on the company's 6.47% senior notes due 2011 and the 7.39% senior subordinated notes due 2017.

The downgrade reflects Express's weakening competitive position due to several significant new crude oil pipelines starting operations in surrounding basins, S&P said.

Despite these concerns, the agency said it still views Express as an investment-grade asset benefiting from low leverage and adequate debt service coverage ratio.

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