S&P: Borger notes off watch

Standard & Poor's said it removed the CreditWatch listing with negative implications from Borger Energy Associates LP/Borger Funding Corp.'s. BB+ rated $117 million senior secured bonds due 2022.

The outlook is now negative.

S&P said the removal of the CreditWatch listing results from S&P's assessment that steam-offtake volumes, and thus cash flows, are likely to return to historic levels or increase in 2007 and beyond. The plant currently operates at a historically low steam output level due to process redesign initiatives and a coker installation at ConocoPhillips (A-/negative/--) that temporarily reduces steam requirements.

After 2007, steam requirements are expected to increase to at least normal levels and may exceed these levels, if Borger installs additional steam capacity that is under consideration at Conoco's request.

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