Fitch: Kinder Morgan Energy notes BBB

Fitch Ratings said it assigned a BBB rating to Kinder Morgan Energy Partners, LP's proposed $1.75 billion senior unsecured notes.

The outlook is stable.

Net proceeds from the offering will be used to repay commercial paper and for general corporate purposes, which may include the purchase of additional membership units in subsidiary Copano Energy LLC and the subsequent redemption or repurchase by Copano Energy of a portion of its outstanding 7 1/8% senior notes due 2021.

Fitch said Kinder Morgan Energy's rating and outlook reflect its significant and growing scale and scope of operations; geographic and functional diversity of assets; successful track record in acquiring, expanding, financing and operating energy operations; predictable earnings and cash flow generated from natural gas and refined products pipelines; and Fitch's expectation for stable credit metrics in 2013, including adjusted debt to EBITDA of approximately 4x or below for the year.

Moreover, recent acquisitions have been funded in a credit-neutral manner, the agency said.

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