Fitch: NGPL outlook negative

Fitch Ratings said it affirmed the issuer default and senior unsecured debt ratings for NGPL PipeCo LLC at BB+ and revised the outlook to negative from stable.

The action reflects the phased-in reduction of cash flows through 2012 resulting from NGPL's uncontested rate settlement, which was approved by FERC in July 2010, according to the agency.

NGPL's debt-to-EBITDA ratio for calendar 2012 is expected to be about 6.2 times.

Credit ratios will likely modestly improve thereafter when corrosion testing expenses lessen, the agency said.

Concerns include the relatively short average term of NGPL's transportation contracts of about 2.8 years and the related re-contracting risk, the limiting effect the reduced cash flows has on the company's operating flexibility and strategies, and NGPL's ability to efficiently refinance its $1.25 billion of notes that will mature in December 2012, the agency noted.

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