Fitch: Planned merger favorable for Energy Transfer Partners

Fitch Ratings said the planned formation of a new holding company that would own both Southern Union Co. (BBB-) and Sunoco, Inc. (BB+) has favorable credit implications for Energy Transfer Partners, LP (BBB-/negative).

The new structure simplifies Energy Transfer Partners' organizational structure and diversifies and increases the scale of its operations, the agency said. The transaction is expected to be completed by the fourth quarter of 2012.

Energy Transfer Partners' current negative outlook reflects its aggressive acquisition and organic growth activities, the associated transactional risk and the impact these activities have on credit metrics, Fitch said.

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