S&P affirms Kinder Morgan, lifts El Paso

Standard & Poor's said it affirmed the BB corporate credit rating on Kinder Morgan Inc. after the company completed its purchase of El Paso Corp. for $38 billion.

The agency also affirmed El Paso's BB corporate credit rating.

The outlook remains stable.

S&P also affirmed the BBB corporate rating on its master limited partnership, Kinder Morgan Energy Partners LP.

The outlook is stable.

S&P also raised El Paso's unsecured rating to BB from BB- and removed it from CreditWatch with developing implications, where it was placed in October 2011.

The agency also raised El Paso Pipeline Partners LP's corporate credit rating to BBB- from BB and removed it from CreditWatch with positive implications, where it was placed in October 2011.

S&P also raised the corporate credit ratings on Colorado Interstate Gas Co. and Southern Natural Gas Co. to BBB- from BB and removed them from CreditWatch with positive implications, where the ratings also were placed in October 2011.

The ratings reflect the company's satisfactory business risk profile balanced by worsening financial measures that will result from the transaction, S&P said.

The upgrade on El Paso reflects its higher recovery rating due to the retirement of its secured debt, the agency added.

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