S&P: Williams ratings unaffected by idling

Standard & Poor's said Monday that the U.S. Department of Transportation Office of Pipeline Safety's decision to idle portions of the 26-inch Northwest pipeline owned by The Williams Cos. Inc. (B+/negative/--) has no near-term affect on the rating on the company.

There is no immediate impact on the company's ability to meet current market demand, primarily because Northwest has a parallel 30-inch pipeline in the same pipeline corridor. Preliminarily, Williams could replace the capacity associated with the idled 26-inch pipe with about 100 miles of new 36-inch pipeline.

S&P said it does not expect this event to materially affect operating cash flow or capital expenditures in 2004. Over the longer term, large capital outlays would be required to construct a new 36-inch pipeline. Northwest would also be at risk for recovery of the capital project in base rates.

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