Fitch rates Kinder Morgan notes BBB

Fitch Ratings said it assigned a BBB rating to Kinder Morgan Energy Partners, LP's $500 million offering of 9% senior notes due 2019. The issuer default rating is BBB.

The outlook is stable.

Proceeds will be used to repay short-term debt and for general corporate purposes.

The BBB rating reflects significant scale and scope of operations, diversity of assets, track record in acquiring, expanding and operating energy assets, and predictable earnings and cash flow, the agency said.

Other considerations include the company's relationship with Knight Inc., owner of its general partner interest (BB+/stable), exposure to changes in commodity prices, potential adverse regulatory rulings on its Pacific products pipelines, exposure to interest rates on its variable rate debt and aggressive expansion spending program, the agency said.

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