Moody's rates Transwestern Pipeline

Moody's Investors Service said it assigned a B1 senior secured rating to Transwestern Pipeline Co.'s term loan and a B1 senior implied rating, subject to a satisfactory review of final documentation.

Although on a standalone basis, Transwestern has a stable credit profile as a solidly capitalized regulated gas pipeline, its ratings are suppressed by its indirect ownership by Enron Corp., which is in Chapter 11. Transwestern is not a debtor in that bankruptcy proceeding.

The outlook is positive, reflecting the progress made to-date in the Enron bankruptcy, notably the recent formation of CrossCountry Energy LLC, the new intermediate holding company that is now the parent of Transwestern. Enron's equity interest in Transwestern and certain other pipeline holdings were transferred, free and clear of all liens and claims, into CrossCountry.

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