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Fitch puts El Paso on watch
Fitch Ratings said it placed the ratings of El Paso Corp. on Ratings Watch negative following news of its acquisition by Kinder Morgan Inc.
Fitch also said it affirmed the ratings on Tennessee Gas Pipeline Co. and El Paso Natural Gas Pipeline Co. and revised the outlooks to stable from positive.
The agency also said it affirmed the ratings and outlooks of El Paso Pipeline Partners Operating Co., Colorado Interstate Gas Co. and El Paso Natural Gas Co., and the ratings and outlook on El Paso Exploration and Production.
The negative watch reflects the transaction risk associated with El Paso's purchase by Kinder Morgan and the contemplated asset sales, Fitch said.
While the sale of the higher volatility exploration and production business and pay down of El Paso's debt represents a longer term positive for the rating, Fitch said it would note that execution of the asset sale, debt pay down and other details remain uncertain at this time.
The agency said it will resolve the watch as it gets closer to completion, which is expected by the second quarter of 2012.
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