Moody's lowers Regency Gas view to negative

Moody's Investors Service said it affirmed Regency Gas Services LLC's ratings (B1 corporate family rating, B1 senior secured for its first-lien term facility, B3 senior secured for the second-lien term facility, SGL-3 speculative-grade liquidity rating) and changed its outlook to negative from stable.

These rating actions follow an analysis of the potential credit impact from Regency's recently announced $125 million expansion of its intrastate gas pipeline, Regency Intrastate Gas (RIG), and amendments of its credit facility agreements that the project has precipitated, the agency said.

The outlook is changed due to some speculative aspects of this undertaking that heighten Regency's risks over the near term, including that much of the new capacity is not yet contracted and state regulatory approval, environmental permits and rights-of-way not yet obtained, Moody's noted.

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