S&P upgrades Targa

Standard & Poor's said it raised its corporate credit rating on Targa Resources Inc. to B+ from B, based on the lower financial leverage throughout the Targa organization and its expectation for improved financial metrics in 2010.

The outlook is stable.

S&P said it also revised the senior secured recovery rating to 2 from 1.

The senior secured rating of BB- and the senior unsecured rating of B are unchanged, based on S&P's expectation of full repayment of Targa's 8½% notes due 2013.

Targa plans to raise a new senior secured credit facility of up to $700 million and use the proceeds to permanently reduce existing debt plus a portion of outstanding principal on Targa Resources Investments Inc.'s holding company loan due 2015.

The stable outlook reflects S&P's view that Targa will have sufficient liquidity and lower leverage in 2010.

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