Moody's affirms Southern Union

Moody's Investors Service said it affirmed Southern Union Co.'s Baa3 senior unsecured rating.

The outlook remains negative.

"The negative outlook reflects Southern Union's tight liquidity and limited covenant headroom," Pete Speer, Moody's vice president, said in a statement. "However, the company's major interstate pipelines and limited business risk profile continues to support its investment grade rating."

Southern Union's Baa3 rating reflects its ownership interests in large scale interstate natural gas pipelines that provide stable cash flows and returns and its relatively limited exposure to volume and commodity price risk primarily in its gas gathering and processing operations, the agency said.

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