Moody’s changes Kinder Morgan view

Moody's Investors Service said it changed Kinder Morgan Inc.'s outlook to positive from stable and affirmed its Baa3 senior unsecured and Prime-3 commercial paper ratings.

"The positive outlook reflects Moody's expectation that Kinder Morgan remains committed to deleveraging below 5x, including use of its proceeds from the sale of Trans Mountain to repay debt," Terry Marshall, Moody's senior vice president, said in a news release.

"Moody's expects Kinder Morgan's Moody's adjusted leverage to trend below 5x."

The agency said the Baa3 rating is supported by significant scale and high-quality natural gas pipelines and important ancillary assets, stable fee-based demand-pull cash flows, significant internal funding of capex and dividends, very good dividend coverage and elimination of the significant execution risk associated with the Trans Mountain Pipeline system and expansion project after its announced sale to Canada by Kinder Morgan Canada Ltd.

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