Moody's affirms Energy Transfer

Moody's Investors Service said it affirmed the corporate family rating at Ba1 and senior secured ratings at Ba2 on Energy Transfer Equity LP, along with Energy Transfer Partners, LP long-term debt rating at Baa3.

The agency changed Energy Transfer Equity's outlook to negative from stable. Energy Transfer Partners outlook remains stable.

The affirmations and outlooks are in response to announced transactions in which Energy Transfer Equity will acquire a unit of Regency Energy Partners from GE Financial Services and transfer direct ownership of a 49.9% stake in Midcontinent Express Pipeline LLC from Energy Transfer Partners to Regency, Moody's said.

The ratings reflect Energy Transfer's increased scale, asset footprint and diversification, the agency said.

However, Energy Transfer Equity's outlook is changed to negative to reflect the increased debt of the consolidated entity, including about $1 billion of incremental debt at the Regency level and $300 million of preferred stock issued directly by Energy Transfer Equity, Moody's said.

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