Fitch: Texas Gas notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Texas Gas Transmission, LLC's pending $115 million issuance of senior unsecured notes.

The follow-on offering of 4.5% notes would rank pari passu with Texas Gas' other senior unsecured debt and mature Feb. 1, 2021.

The outlook is stable.

The proceeds and other borrowings will be used to redeem all of the $115 million in principal amount of the company's 5.5% senior unsecured notes due April 1, 2013, Fitch said.

The ratings reflect the company's robust and predictable cash flows supported by multi-year contracts and strong support through its parent, Boardwalk Pipelines, LP, by its ultimate majority owner, Loews Corp., the agency said.

These strengths are partially mitigated by the less favorable re-contracting environment with Gulf Coast shippers due to reduced drilling activity caused by low natural gas prices and a weighted average contract life of six years, Fitch added.

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