Moody's may lift Williams Partners

Moody's Investors Service said it placed Williams Partners, LP's Ba2 corporate family rating and senior unsecured debt ratings under review for possible upgrade.

Moody's said it also affirmed the Williams Cos., Inc.'s Baa3 senior unsecured ratings, and the Baa2 senior unsecured ratings of Transcontinental Gas Pipe Line Co., LLC and Northwest Pipeline GP.

These rating actions are in response to Williams announced plan of contributing substantially all of its midstream and pipeline assets to Williams Partners, the agency said.

The outlooks are stable.

"This large asset contribution from Williams gives Williams Partners the size, business risk mix and leverage profile of a Baa3 rated MLP," commented Pete Speer, Moody's vice president.

"Although this reduces the asset base that directly supports Williams' creditors, the planned reduction in debt at Williams combined with it retaining a substantial E&P business and control over Williams Partners supported the affirmation of Williams' Baa3 rating."

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