Fitch: Williams on positive watch, view to stable

Fitch Ratings said it placed the ratings for the Williams Cos., Inc. on Rating Watch positive.

The agency also affirmed the company’s issuer default rating at BBB-, senior unsecured debt rating at BBB- and junior subordinated convertible debentures at BB.

The issuer default and senior unsecured ratings on Williams Partners LP also were affirmed at BBB, along with the senior unsecured BBB rating on Williams Partners Finance Corp.

The company’s pipeline subsidiaries, Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co., LLC also were affirmed at BBB+.

The outlooks were revised to stable from negative.

These positive watch follows news that Williams will acquire all of the outstanding shares of Williams Partners.

Fitch said it expects to consolidate the ratings of Williams and Williams Partners once the transaction is completed. The junior subordinated convertibles are expected to be upgraded one notch to BB+, the agency said.

The transaction was largely motivated by the company’s strategy to operate with a lower cost of capital and favorable tax benefits, Fitch said.

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