S&P: Pipeline Funding view to negative

Standard & Poor's said it revised the outlook on Pipeline Funding Co. LLC's $500 million senior secured bonds to negative from stable and affirmed its BBB- issue-level rating. The company currently has no other debt outstanding.

The rating is constrained by the ratings on Florida Gas Transmission Co. LLC, with a one-notch separation, S&P said. The agency said it deems the obligation of Citrus Corp. as structurally subordinate to Florida Gas' unsecured debt.

The rating is based on the credit quality of the underlying $500 million construction and term loan made to Citrus Corp. that secures Pipeline Funding's financing, the agency said. In October 2008, Pipeline Funding provided a construction loan to Citrus that largely mirrored the terms of its own issued debt, S&P said.

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