Fitch rates Southern Union units BBB

Fitch Ratings said it assigned a final BBB rating to Southern Union Co.'s $100 million 5% equity units.

The outlook is stable.

Each equity unit consists of Southern Union senior notes due Feb. 16, 2010 and a purchase contract requiring the holder to buy Southern Union common shares no later than Feb. 16, 2008. Southern Union will make fixed quarterly payments on the senior notes, as well as a quarterly adjustment payment on the forward equity purchase contract.

Proceeds from the sale of the equity units, along with $343 million of new common equity priced on Feb. 7, will be used by Southern Union to retire a bridge loan associated with the November 2004 acquisition of a 50% interest in CrossCountry Energy LLC.

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