Moody's puts NGPL on review

Moody's Investors Service said it placed under review for possible downgrade NGPL PipeCo LLC's Ba1 corporate family rating, senior debt and probability of default rating. Its speculative-grade liquidity rating was affirmed at SGL-3.

NGPL's near-term financial performance appears weaker than the range incorporated into its current ratings, the agency said.

The lower prospective financial metrics raise the potential that NGPL will breach its revolver covenant over the next 12 months, further testing its liquidity resources while it faces the maturity of $1.25 billion of notes in December 2012 and the expiration soon after of its $100 million credit facility in February 2013, the agency added.

NGPL's ability to effectively deal with these challenges could be hampered by the ongoing dispute between its two owners on the allocation of expenses, Moody's said.

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