Moody's lowers Oneok

Moody's Investors Service said it downgraded the ratings of Oneok Inc.'s debt and supported obligations to Baa2 senior unsecured from Baa1.

The outlook is stable.

Moody's said these actions conclude a review that began last May following Oneok's announcement of its $1.35 billion cash acquisition of the Koch companies' NGL assets. Oneok's credit metrics will decline to levels outside the ranges accommodated by Moody's previous ratings and will not be sufficiently mitigated by the reduction in business risk from the recent sale of its production unit, Moody's said.

While Moody's said it believes the metrics can recover, its decision to lower the ratings focuses on Oneok's strategy of acquiring and selling assets that expose debtholders to ongoing event risk. Moody's said it believes the Baa2 ratings will better accommodate the company's current strategic focus and track record.

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