Fitch rates Kinder Morgan notes BBB

Fitch Ratings said it assigned a BBB rating to Kinder Morgan Energy Partners, LP's $300 million 5 5/8% senior notes due 2015 and $700 million 6.85% senior notes due 2020.

The outlook is stable.

Proceeds will be used to repay borrowings under its credit facility and for general corporate purposes.

Fitch said the rating reflects significant scale and scope of operations, geographic and functional diversity of assets, a favorable track record in acquiring, expanding and operating energy assets, and predictable earnings and cash flow.

Other considerations include the company's relationship with Knight Inc. (BB+/stable), the economic effect of potential adverse regulatory rulings on its Pacific products pipelines, exposure to interest rates on $4.8 billion of variable-rate long-term debt, the effects of a recessionary economy on asset utilization, the company's aggressive expansion spending program, and its exposure to changes in commodity prices and volumes, the agency said.

The issuer's debt-to-EBITDA ratio was about 4.1 times in 2008.

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