S&P affirms Regency Gas

Standard & Poor's said it affirmed its B+ corporate credit rating on Regency Gas Services LLC and removed the rating from CreditWatch with negative implications.

The outlook is stable.

The affirmation reflects the agency's assessment of Regency's recently announced $125 million Northern Louisiana expansion and its expected impact on the company's business risk profile and financial credit metrics, S&P said.

Regency's business risk profile is weak and asset base small relative to its natural gas midstream peers and the company's operating history is brief.

These risks are somewhat mitigated by long-lived, predictable reserves and increased drilling activity in its operating regions, supported by the currently favorable pricing environment, S&P said.

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