Moody's may cut Kinder Morgan

Moody's Investors Service said it placed the ratings for Kinder Morgan Kansas, Inc. on review for downgrade following its announcement that it has reached an agreement to purchase 100% of the stock of El Paso Corp.

"The acquisition of El Paso by Kinder Morgan requires an additional $12 billion of debt layered on top of the existing capital structure of the two companies without any new third party equity," Stuart Miller, Moody's vice president and senior analyst, said in a release.

"Accordingly, our natural reaction would be to consider a downgrade of the debt of the combined organization. We have held off on a downgrade at this time to better assess the likelihood and timing for debt reductions by year-end 2012."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.