S&P assigns Kinder Morgan loan BB-

Standard & Poor's said it assigned its BB- bank loan rating and 3 recovery rating to Kinder Morgan Inc.'s $7.3 billion credit facilities based on preliminary terms and conditions.

The 3 recovery rating indicates the expectation of meaningful recovery of principal in the event of a payment default, the agency said, adding that the facilities comprise a $1 billion six and one-half year term loan A, a $3.3 billion seven-year term loan B, a $2 billion three-year term loan C and a $1 billion six-year revolving credit facility.

The agency added that it affirmed its BB- rating on Kinder Morgan's unsecured debt, as that debt is to be ratably secured with the new secured bank loans.

The corporate credit rating on the company is BB- and the outlook is stable, S&P said.

The ratings on Kinder Morgan reflect the significant debt leverage that is being taken on in a management-led buyout of the company's public shareholders, the agency added.

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