DBRS confirms Kinder Morgan

DBRS said it confirmed the BBB (high) rating on Kinder Morgan Energy Partners, LP's medium-term notes and unsecured debentures and the R-2 (high) rating on its commercial paper.

The trend is stable.

The confirmation reflects DBRS' expectations that Kinder Morgan will restore its credit metrics to 2007 and 2008 levels by 2011. The agency said the company's credit metrics were negatively affected by the $921 million purchase of a 50% interest in a joint venture with Petrohawk Energy Corp. in May as well as rate cases settlement (total payments of $206 million) on the Products pipelines segment.

On a positive note, the agency believes that Kinder Morgan has passed the point of maximum risk on project execution and that its business risk has improved by proxy of the rising long-term contractual support from its three largest natural gas pipeline projects in full service from the second half of 2009.

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