S&P affirms Energy Transfer

Standard & Poor's said it affirmed the BB- corporate credit rating on Energy Transfer Equity LP, BBB- corporate credit rating on Energy Transfer Partners LP, BBB- corporate credit rating on Southern Union Co., and BB corporate credit rating on Regency Energy Partners LP.

The outlook is stable.

Energy Transfer Equity's recovery rating remains at 4 and Regency Energy's recovery rating remains at 5.

The agency said it has reviewed the implications of the proposed transaction and believes it will not change existing ratings.

The acquisition will initially lead to a material weakening of Energy Transfer's credit metrics when the transaction closes due to the issuance of $4.2 billion of series B units to fund the purchase, S&P said.

But, the agency said it incorporates an expectation that credit metrics will significantly improve in 2012 as the company reduces debt.

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