Moody's affirms Oneok

Moody's Investors Service said it affirmed the ratings of Oneok Inc., Northern Border Partners LP and its subsidiary Northern Border Pipeline Co., all with stable outlooks. These rating actions follow the companies' announcement of roughly $3 billion of related transactions.

Subject to anti-trust clearance, Oneok and Northern Border Partners plan to engage in a number of transactions that include Oneok selling its natural gas liquids, gathering and processing and pipeline and storage segments to Northern Border Partners for $3 billion; Northern Border Partners paying Oneok $1.35 billion in cash and issuing about $1.65 billion of LP units; Northern Border Partners selling a 20% interest in its 70% owned subsidiary Northern Borders Pipeline to an affiliate of TransCanada Corp. for $300 million and Oneok acquiring the 17.5% Northern Border Partners general interest it does not already own from TransCanada for a net $30 million in cash, giving OKE sole ownership of the Northern Border Partners' general partner.

The affirmations and stable outlooks reflect Moody's expectation that these transactions will have a neutral impact on the credit profile of the companies.

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