S&P rates Plains All American notes BBB-

Standard & Poor's said it assigned its BBB- rating to the proposed $350 million senior unsecured notes offering of Plains All American Pipeline LP and PAA Finance Corp.

Proceeds will repay the bank debt used to fund the partnership's acquisition of the remaining 50% interest in its natural gas storage joint venture, PAA Natural Gas Storage LLC; and, possibly, to redeem a portion of Plains' existing 7.13% senior notes due 2014, the agency noted.

On a pro forma basis, S&P said it expects Plains to have $4.4 billion in long-term debt as of June 30.

Assuming the acquisition of the remaining 50% interest in Plains All American is financed entirely with debt, the agency said it expects adjusted long-term debt to estimated 2009 EBITDA to increase to about 4.4x, which is at the higher end of expectations for the BBB- rating.

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