Moody's: Semco up to stable

Moody's Investors Service said it changed the outlooks on Semco Energy Inc. and its supported debt (Ba2 senior unsecured) to stable from negative.

Moody's said the change follows Semco's announcement that it had settled a dispute with Atlas Pipeline Partners LP for a cash payment of $5.5 million, a much smaller amount than the $94 million in damages Atlas had sought.

The stabilization of Semco's rating outlook reflects the elimination of this large contingent liability with no material impact to its credit profile or liquidity, according to Moody's.

Moody's said the stable outlook also acknowledges Semco's efforts to improve its credit quality by reducing debt (6% reduction in long-term debt during 2004) and suspending its common dividend.

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