Fitch: Southern Union on watch

Fitch Ratings said it placed the ratings of Southern Union Co. and wholly owned subsidiary Panhandle Eastern Pipe Line Co. LLC on Rating Watch negative.

Affected ratings include Southern Union's senior unsecured debt at BBB and preferred stock at BBB- as well as Panhandle's senior unsecured debt at BBB.

Fitch noted the Rating Watch negative status reflects the initial leveraging impact of the company's recent purchase, the execution risk surrounding completion of Southern Union's permanent funding strategy and the potential for higher cash flow volatility on a post acquisition basis.

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