S&P: Regency Energy unchanged

Standard & Poor's said the B+ rating and 5 recovery rating on Regency Energy Partners LP's 6 7/8% senior unsecured notes due 2018 remained unchanged after upsizing the notes to $600 million from $500 million.

The outlook is positive.

The corporate rating on Regency is BB-.

S&P said Regency's recent capital market offering coupled with a larger cash flow contribution from its pipeline joint venture interests should continue to lower financial leverage through the end of 2011.

Regency will need to maintain debt-to-EBITDA between 4 times and 4.25 times, execute its 2011 growth program as planned and increase the cash flow it receives from its stable pipeline joint venture interests to achieve a higher rating.

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