S&P: Southern Union remains on negative watch

Standard & Poor's said its ratings on Southern Union Co. and operating subsidiary Panhandle Eastern Pipe Line Company L.P., including the BBB- corporate credit ratings, remain on CreditWatch with negative implications.

The ratings were originally placed on CreditWatch with developing implications on July 20, 2011; the CreditWatch implications were revised to negative on Nov. 15.

"The CreditWatch update follows U.S. midstream master limited partnership Energy Transfer Equity L.P.'s proposed funding plan to acquire Southern Union Co. and its operating subsidiary, Panhandle Eastern Pipe Line L.P., which could result in better financial metrics for ETE than we previously expected.

"The CreditWatch implications for Southern Union are based on Southern Union's pending merger with lower-rated acquirer ETE," said S&P credit analyst Michael Grande in a news release.

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