S&P: Western Gas to positive

Standard & Poor's said it changed the outlook on Western Gas Partners LP to positive from stable.

S&P also said it affirmed its corporate credit rating at BB+ and the rating on the notes at BB+ with a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The ratings reflect a fair business risk profile and an intermediate financial risk profile, the agency said.

The partnership's business strengths stem from its largely fee-based contract mix and arrangement with sponsor Anadarko Petroleum Corp., whereby Anadarko effectively insulates Western Gas from direct commodity price risk for most of its commodity price-sensitive natural gas-processing contracts, S&P said.

Offsetting these strengths are the partnership's limited geographic diversity, small scale relative to most investment-grade peers and potential lower production in the natural gas basins it serves. the agency said.

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