S&P lowers Southern Union outlook to negative

Standard & Poor's said it revised its outlook on Southern Union Co.'s BBB- corporate credit rating to negative from stable.

The outlook revision follows the company's announcement of its 2007 strategic plan, which includes plans to move its Southwest Gas Storage assets into a master limited partnership by the end of 2007, the agency said.

The plan signals the company's potential change toward a more aggressive financial policy, which could pressure ratings, S&P noted.

The agency added that it believes that Southern Union's decision to form an MLP was in response to demands made by its largest independent shareholder, Sandell Asset Management, who had previously urged the company to sell its remaining utilities, convert its Trunkline LNG terminal into a MLP, or increase its dividends.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.