Fitch assigns Enterprise GP loan BB

Fitch Ratings said it assigned a BB rating on Enterprise GP Holdings LP's seven-year $850 million senior secured term loan B due Nov. 8, 2014.

Proceeds from the term loan B were used to permanently refinance borrowings outstanding under the company's $850 million term loan A-2 that had a maturity date in May 2008, the agency said.

According to Fitch, the ratings of Enterprise GP reflect the diversity of cash flows being distributed to the company from the underlying asset base, the benefits of receiving both LP and GP distributions, the proven track record of management in supporting the credit quality of the entities throughout the EPE corporate structure and the continued strength of North American energy fundamentals.

Offsetting factors include the lack of direct ownership of any of the operating assets by Enterprise GP, the significant growth plans at each of the MLPs, exposure to commodity prices and Fitch's expectations that further transactions are likely, adding to the complexity of the organizational structure.

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