Moody's ups Knight outlook to positive

Moody's Investors Service said it changed the outlook for Knight Inc. (Ba2 corporate family rating) and its indirect subsidiary Kinder Morgan GP, Inc. (Ba2 preferred stock rating) to positive from stable, following the announcement that Knight has entered into an agreement to sell an 80% equity stake in its subsidiary MidCon to Myria Acquisition and that virtually all the $5.3 billion of after-tax cash proceeds would be used to repay Knight's debt.

Kinder Morgan Energy Partners, LP's outlook is not affected by this announcement, the agency said.

If requisite regulatory clearances are received early next year as contemplated, this transaction would roughly halve Knight's debt and accelerate its restructuring process, Moody's noted.

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