S&P: Express view negative

Standard & Poor's said it revised the outlook to negative from stable on Express Pipeline System's $250 million subordinated secured notes due 2017 and $110 million senior secured notes due 2020.

The agency also said it affirmed the A- rating on its $150 million senior secured notes due 2011, the BBB- rating on the 2017 notes and the BBB rating on the 2020 notes.

The outlook revision reflects greater potential for cash flow volatility once 48% of the pipeline's ship-or-pay contracts come due in March 2012, S&P said.

The agency said it believes management will eventually execute new long-term contracts with shippers, but some volumes will be exposed to market rates until that time.

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