S&P: Copano on positive watch

Standard & Poor's said it affirmed the BBB corporate credit rating on Kinder Morgan Energy Partners LP and maintained the outlook at stable.

S&P also said it placed the B+ corporate credit rating on Copano Energy LLC on CreditWatch with positive implications.

The agency said it believes the $5 billion unit-for-unit transaction is broadly neutral to Kinder Morgan's credit profile.

This is due to the credit-favorable unit financing, Copano Energy's relatively small size compared with Kinder Morgan and broadly unchanged pro forma credit measures, S&P said.

These positive factors are somewhat offset by Copano Energy's commodity price exposure, but Copano Energy has a sizable fee-based business and Kinder Morgan's commodity price sensitivity pro forma for the transaction is broadly in line with expectations, the agency said.

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