S&P lowers Suburban Propane, rates notes BB-

Standard & Poor's said it lowered the corporate credit and senior unsecured ratings on Suburban Propane Partners LP to BB- from BB and removed the ratings from CreditWatch, where they were placed with negative implications in April.

The outlook is stable.

S&P also said it assigned a BB- rating and 4 recovery rating to Suburban's 7½% notes due 2018 and 7 3/8% notes due 2021.

The 4 recovery rating indicates 30% to 50% expected recovery in a default.

The acquisition of Inergy's retail propane business will result in higher financial leverage, which more than offsets the increased scale the propane business brings, S&P said.

Suburban's credit measures are aggressive, based on the increase in debt from the exchange and an unseasonably warm winter that significantly affected financial results, the agency said.

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