Fitch: Williams notes BBB-

Fitch Ratings said it assigned a BBB- rating to Williams Partners, LP's issuance of senior unsecured notes.

The notes rank pari passu with the issuer's existing and future senior unsecured debt, Fitch said.

The proceeds will be used for general partnership purposes, including repayment of $1.4 billion principal amount of 4 7/8% senior notes due 2023 or other debt.

The ratings also are on Rating Watch positive, the agency said.

The ratings have been on positive watch since news that Williams agreed to sell 100% of its membership interest in Williams Olefins LLC, which owns a 88.46% undivided ownership in the Geismar olefins plant, Fitch said.

Total consideration for the transaction is expected to be $2.1 billion in cash, the agency said.

The transaction is expected to close in the summer 2017, Fitch said, and will require regulatory approvals.

The ratings reflect the size, scale and cash flow stability of this master limited partnership, the agency said.

Williams has been increasing its focus on its pipeline businesses, which generate steady cash flows, Fitch added.

The rating also reflects volumetric risk as the company has sizable activities in the gathering and processing sub-sector of the midstream industry, the agency said.

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