Moody's cuts Inergy view to negative

Moody's Investors Service said it moved the ratings outlook for Inergy, LP to negative from stable due to the company's ongoing aggressive acquisition activity and its departure from the funding strategy expected by Moody's which has pushed the company's current debt leverage towards the high end for the ratings.

Moody's also said it affirmed Inergy's ratings including its corporate family rating at Ba3, $425 million of 6?% senior unsecured notes due 2014 at B1 and speculative grade liquidity rating at SGL-3.

The outlook also reflects the expectation that leverage will likely remain high as Inergy will continue to aggressively grow its propane and midstream businesses while it also funds the expansion of the Stagecoach natural gas storage, Moody's said.

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