| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers K > Headlines for Kinder Morgan Management, LLC > News item |
S&P lifts Kinder Morgan
Standard & Poor’s said it raised Kinder Morgan Inc.’s corporate credit rating and senior unsecured issue rating to BBB- from BB and removed the ratings from CreditWatch, where they were placed with positive implications in August.
This action follows news that most shareholders of Kinder Morgan and Kinder Morgan Management LLC and the unitholders of Kinder Morgan Energy Partners LP and El Paso Pipeline Partners LP voted for the merger transaction under which Kinder Morgan will acquire all of the publicly held shares and units of the entities.
S&P also said it lowered Kinder Morgan Management’s corporate credit rating, including those of operating subsidiaries Copano Energy and Tennessee Gas Pipeline, to BBB- from BBB.
The agency also said it lowered Kinder Morgan Management’s short-term rating to A-3 from A-2 and removed all of the ratings from CreditWatch negative.
S&P also said it lowered El Paso Pipeline’s corporate credit rating, including those of its operating subsidiaries Southern Natural Gas and Colorado Interstate Gas, to BBB- from BBB and removed the ratings from CreditWatch negative.
The outlook is stable.
The ratings reflect Kinder Morgan’s excellent business risk profile and highly leveraged financial risk profile, the agency said.
The combined Kinder Morgan has a geographically diverse asset base that generates primarily fee-based, stable EBITDA and has a strong competitive position in most of the markets it serves, S&P said.
Somewhat tempering the benefits to creditors of the combined Kinder Morgan are the company’s aggressive financial policies, namely high financial leverage and the reliance on the capital markets to fund large discretionary cash flow deficits, the agency said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.