DBRS upgrades Kinder Morgan

DBRS said it upgraded the issuer rating and senior notes and debentures rating of Kinder Morgan, Inc. to BBB from BBB (low).

DBRS also upgraded the medium-term notes and unsecured debentures rating of Kinder Morgan's wholly owned subsidiary, Kinder Morgan Energy Partners, LP, to BBB.

The trends are stable.

Kinder Morgan and Kinder Morgan Energy Partners have the same rating because of the cross-guarantee agreement between the entities whereby each party to the agreement has unconditionally guaranteed, jointly and severally, the payment of specified indebtedness of the other party to the agreement, DBRS said.

The company has successfully de-leveraged its balance sheet while executing on its significant capital program, increasing dividends and buying back shares, the agency said.

In addition to having a simplified corporate structure, Kinder Morgan's credit profile benefits from relatively stable cash flows generated from its well-diversified portfolio of contracted and fee-based energy infrastructure assets, DBRS said.

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