Moody's ups El Paso Corp.

Moody's Investors Service said it upgraded the ratings on the debt and supported obligations of El Paso Corp. and its subsidiaries, all with a positive outlook. El Paso's corporate family rating was upgraded to B1 from B3; the parent company's senior unsecured debt to B2 from Caa1; its pipeline subsidiaries' senior unsecured debt to Ba2 from B1; and its E&P subsidiary El Paso Exploration & Production Co.'s senior unsecured debt to B1 from B3. Its speculative grade liquidity rating remains SGL-3.

Moody's said El Paso met its 2006 financial goals by reducing roughly $2 billion in debt since the beginning of this year and selling $500 million of common stock last week.

El Paso's ratings remain constrained by its still substantial debt compared to its relatively modest shareholders' equity, Moody's said.

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