S&P: Enterprise Products unchanged

Standard & Poor's said Hurricane Katrina's impact on Enterprise Products Partners LP's (BB+/stable) operations should not affect its rating on the company provided that gas production does not remain shut in over the medium to long term and cause material losses of gross operating margin.

"Enterprise has sufficient cushion to weather its expected reduction in third quarter cash flow," said S&P credit analyst Aneesh Prabhu.

"Over the past 18 months, credit metrics have improved so that the company has the ability to absorb short-term setbacks."

S&P added should Enterprise suffer a prolonged loss of gross operating margin from lower processing volumes, the rating could be lowered and it is not known at this time the extent to which gas production volumes will remain shut in.

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