Fitch: Gulf South notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Gulf South Pipeline Co., LP's proposed issuance of $300 million notes due 2022.

The agency said it expects proceeds to be used primarily to reduce Gulf South's revolver borrowings.

Key rating factors include the following strengths: robust and predictable cash flows supported by multi-year contracts which have a weighted average contract life of approximately five years; strong support through its parent, Boardwalk, by its ultimate majority owner, Loews Corp.; and good market position in the Gulf Coast area.

These strengths are partially mitigated by the following concerns: a somewhat highly-leveraged financial profile at Boardwalk and a less-favorable re-contracting environment for Gulf South due to increased competition and low basis differentials.

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