Moody's confirms El Paso Corp. ratings

Moody's Investors Service said it confirmed the ratings of El Paso Corp. (B3 senior implied) and its subsidiaries with a negative outlook, following the company's unveiling of its turnaround plan.

Moody's said the plan provides only a modest near-term change from its pre-existing initiatives and limited immediate change from factors Moody's considered in changing its outlook to negative last month.

The negative outlook reflects the numerous challenges and extended time frame in executing this plan and what Moody's said is its assessment that there will not be a material improvement in the company's credit profile in the immediate future. In the meantime, El Paso Corp. continues to face sinking natural gas production, falling but still heavy spending needs and exposure to volatile natural gas prices.

Moody's said the following ratings have been confirmed with a negative outlook: El Paso Corp.'s senior unsecured debt at Caa1 and subordinated rating of Caa3, as well as the B3 rated secured credit facility.

Also confirmed with a negative outlook were the ratings of El Paso CGP Co., ANR Pipeline Co., Colorado Interstate Gas Co., Coastal Finance I, El Paso Natural Gas Co., El Paso Tennessee Pipeline Co., Tennessee Gas Pipeline Co., Sonat Inc., Southern Natural Gas Co., El Paso Production Holding Co., El Paso Energy Capital Trust I, El Paso Capital Trust II, El Paso Capital Trust III, and Gemstone Investor Ltd.

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