S&P gives Pipeline Funding CCR BBB

Standard & Poor's said it assigned its BBB corporate credit rating to Pipeline Funding Co. LLC.

The outlook is stable.

At the same time, the agency affirmed its BBB- senior secured issue rating on the company.

S&P bases its BBB issuer credit rating on Pipeline Funding on the consolidated credit profile of Citrus Corp., parent of Florida Gas Transmission Co. LLC (FGT).

Pipeline Funding’s only asset is a $500 million term loan to Citrus that it used to fund Florida Gas’ Phase VIII pipeline expansion. The terms of Pipeline Funding’s $500 million loan largely mirrors the terms of the $500 million term loan at Citrus. Citrus makes interest and principal payments on the underlying term loan from the cash flow it receives from Florida Gas and uses excess proceeds to make payments due to bondholders at Pipeline Funding.

As such, the default risk at Pipeline Funding and Citrus are the same. NextEra Energy Capital Holdings Inc., a wholly owned subsidiary of NextEra Energy Inc., wholly owns Pipeline Funding.

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