S&P gives Regency Gas notes B

Standard & Poor's said it affirmed its B+ corporate credit rating on Regency Gas Services LP.

S&P said it also assigned its B rating to Regency's proposed private placement of $650 million senior unsecured notes.

At the same time, S&P said it raised its rating on Regency's $250 million senior secured revolving credit facility to BB from B+ and also raised its recovery rating on the facility to 1 from 3.

The outlook is negative.

Net proceeds from the proposed $650 million unsecured notes will be used to repay Regency's existing $600 million senior secured term loan and amounts outstanding under the $250 million revolving credit facility, the agency said.

According to the agency, the ratings on Regency reflect a weak business risk profile and highly leveraged financial risk profile.

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