Moody’s lowers Boardwalk Pipelines

Moody's Investors Service said it downgraded Boardwalk Pipelines, LP's senior unsecured ratings to Baa3 from Baa2.

The agency also downgraded the senior unsecured ratings of Gulf South Pipeline Co. and Texas Gas Transmission LLC to Baa2 from Baa1.

All outlooks were changed to stable from negative.

"Boardwalk's financial leverage is likely to remain elevated for several years as it funds capital projects and acquisitions to replace earnings in its core pipeline's business," Moody's senior vice president Pete Speer said in a news release.

"While the partnership has made substantial progress during 2014 in lining up sound capital projects backed by firm customer contracts, the ratings are more appropriately positioned at Baa3 to reflect the extended period of weaker credit metrics and accompanying execution risk."

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