S&P affirms Spectra Energy

Standard & Poor's said it affirmed Spectra Energy Corp.'s BBB+ corporate credit rating.

The outlook was maintained at stable.

The affirmation follows news that Spectra has entered into an agreement to purchase the Bobcat Gas Storage assets for $540 million.

The ratings are unchanged given the relatively small size of Bobcat to Spectra's existing business and financial risk profile, S&P said.

The agency said it views the current contracted working gas capacity at Bobcat as providing near-term cash flow certainty, although contracts are short and re-contracted rates could be pressured by increased gas storage in the region and lower and less volatile natural gas prices, the agency said.

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