Fitch affirms Energy Transfers Partners

Fitch Ratings affirmed Energy Transfers Partners LP's outstanding $750 million senior unsecured notes. The outlook is stable.

Fitch said the rating action follows the announcement that Energy Transfers has acquired a 98% partnership interest in Houston Pipeline Co. from American Electric Power Co. for a cash consideration of $825 million plus working capital.

The company has initially funded the purchase with $350 million of new common units privately placed with institutional investors and a drawdown on its five-year unsecured revolving credit facility.

Fitch said the affirmation reflects the expectation that the acquisition of Houston Pipeline will be permanently funded with a minimum of 50% equity financing.

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