Moody's affirms Suburban

Moody's Investors Service said it affirmed Suburban Propane Partners, LP Ba3 corporate family rating and probability of default rating.

Moody's said it also affirmed the B1 (LGD 5, 73% changed from 78%) rating on the partnership's 6.875% senior notes due 2013.

The outlook is stable.

"Suburban's substantial market position, proven cost saving initiatives and conservative financial policies have strongly positioned the partnership within its Ba3 corporate family rating," commented Pete Speer, Moody's said it vice-president/senior analyst.

"Over the past two years the partnership has streamlined it operations, taking costs out of the business while improving its customer service."

The agency said that the Ba3 rating reflects the continued challenges of operating in the propane and fuel oil retail distribution business which remains highly fragmented and competitive.

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