S&P rates Oneok notes BBB

Standard & Poor's said it assigned a BBB debt rating to Oneok Partners LP's (BBB/stable/A-2) proposed issuance of $500 million senior unsecured notes due 2019.

The agency affirmed ratings on Oneok Inc. (BBB/stable/A-2).

Proceeds will be used to repay borrowing under the company's $1 billion revolving credit facility.

"Ratings factors include our expectation that lower long-term commodity prices will result in weaker cash flow and financial metrics in 2009," S&P analyst Kenneth L. Farer said in a statement.

"Absent the various growth initiatives the company completed in 2008 and those it expects to place in service in 2009 adding about $155 million of EBITDA, consolidated financial metrics would likely have fallen below our expectations for the current rating," he continued.

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