Moody's may up Williams

Moody's Investors Service said it placed the ratings of Williams Partners, LP (Baa3 senior), Northwest Pipeline GP (Baa2) and Transcontinental Gas Pipe Line LLC (Baa2) under review for possible upgrade.

Moody's also affirmed Williams Cos., Inc.'s Baa3 senior ratings and stable outlook.

The rating actions follow Williams' announced plan to separate its exploration and production business and distribute it to shareholders.

The announced separation of the exploration and production business will improve Williams' consolidated business risk profile while also facilitating debt reduction at the parent company, Moody's said.

The review for possible upgrade of Williams Partners reflects its financial leverage that is meaningfully below most other large master limited partnership peers, with a debt-to-EBITDA ratio around 3.5 times at Dec. 31, Moody's said.

The review also incorporates the reduced capital funding needs of Williams following the separation of the exploration and production business, the agency added.

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