S&P: Inergy on watch

Standard & Poor's said it placed its ratings on Inergy LP, including its BB- corporate credit rating and its ratings on Inergy Finance Corp. on CreditWatch with negative implications.

The CreditWatch placement follows the company's announced agreement to acquire solution mining and salt production company U.S. Salt LLC, the agency added.

While Inergy's storage and midstream energy segments may realize some synergies from the U.S. Salt acquisition, the CreditWatch placement reflects the potential that the acquisition could weaken credit-protection measures to levels below those appropriate for the current rating and imply a higher risk tolerance than previously incorporated into the current rating, S&P added.

The agency noted that the rating on Inergy reflects the partnership's weak business risk profile and aggressive financial profile.

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