Fitch rates Kinder Morgan notes BBB-

Fitch Ratings said it assigned a BBB- senior unsecured rating to Kinder Morgan, Inc.'s (KMI) proposed offering of senior unsecured notes due 2028 and 2048.

Proceeds are expected to be used to repay commercial paper, repay borrowings under the company’s revolving credit facility and for general corporate purposes.

“KMI remains one of the largest midstream infrastructure companies in North America, possessing a strong, diverse asset portfolio that spans multiple business lines and serves all of the major supply and demand areas for oil, natural gas and natural gas liquids (NGLs),” Fitch said ni a news release.

“This helps generate significant stable cash flow, which helps offset concerns around high leverage.

“The ratings are supported by KMI's significant cash flow stability, driven by the high percentage of KMI's assets being either fee-based or hedged and Fitch's expectations that KMI's high percentage of fixed fee-generating assets will minimize earnings and cash flow volatility.”

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