Moody’s affirms Kinder Morgan

Moody's Investors Service said it affirmed Kinder Morgan Inc.'s Baa3 senior unsecured and Prime-3 commercial paper ratings.

The outlook remains stable.

The affirmation follows Kinder Morgan’s announced intention to issue $1.6 billion of mandatorily convertible preferred shares, which Moody's treats as equity.

"Kinder Morgan's issuance of mandatorily convertible preferred shares will help the company achieve their year-end 2015 target leverage of 5.6X," Moody's senior vice president Terry Marshall said in a news release.

"However, by mid-2016, after our standard adjustments, Moody's expects leverage will be close to 6X as the company debt funds growth capex, with additional equity issuance not expected until mid-2016."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.