S&P: Southern Union unaffected

Standard & Poor's said Friday that Southern Union Co.'s (BBB/negative/--) proposed acquisition of CrossCountry Energy LLC's pipeline assets does not affect the rating on Southern Union.

If Southern Union is ultimately the successful bidder for the assets, the rating impact will be determined after a review of the long-term prospects for the acquired pipelines' cash flows, as well as an analysis of the execution risks associated with integrating this large acquisition with Southern Union's existing pipeline assets.

The company's proposed financing structure for these assets, in a joint venture with GE Commercial Finance, is commensurate with Southern Union's objective to improve its balance sheet.

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