Fitch rates Kinder Morgan loans BB+

Fitch Ratings said it assigned a BB+ rating to Kinder Morgan, Inc.'s $11.8 billion secured credit facilities (acquisition facility).

The facility comprises a $6.8 billion 364-day bridge loan facility and a $5 billion three-year term loan facility.

The facility will be used to fund the cash portion of the purchase of El Paso Corp. in a $38 billion deal expected to close on May 24, according to the agency.

The ratings remain on Rating Watch negative where they were placed on Oct. 17, following the announcement of the acquisition.

In addition, Fitch affirmed Kinder Morgan Energy Partners, LP's issuer default rating at BBB. The outlook is stable.

The ratings reflect the high levels of leverage at the company pro forma for its acquisition and the transactional risk associated with the assets sales and dropdowns that are essential to the subsequent paydown of acquisition debt, the agency said.

Also considered is the lower consolidated company business risk given the cash flow stability associated with the interstate pipelines, the agency noted.

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