Fitch rates Energy Transfer notes BB

Fitch Ratings said it assigned a BB rating to Energy Transfer Equity, LP's $1.75 billion of senior unsecured notes to be issued in two tranches, due 2020 and due 2017.

The issuer default rating is BB-, and the senior secured term lone and revolving credit facility are rated BB.

The outlook is stable.

Proceeds will be used to repay $124 million under the company's $500 million secured revolving credit facility, a $1.45 billion secured term loan and related interest swap breakage costs.

The agency also assigned a BB rating to the company's $200 million five-year secured revolving credit facility, which will close with the retirement of the revolving credit facility.

Ratings reflect the increasing scale, scope and diversity of the company's operations, strong historical quantitative credit measures, conservative distribution practices, a favorable near-term regional natural gas supply position and the expected benefits of ongoing contractually supported pipeline projects, the agency said.

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