S&P rates Williams notes BB+

Standard & Poor's said it affirmed the BBB- corporate credit rating on Williams Cos. Inc. and assigned a BB+ rating to Williams' $600 million senior unsecured notes due 2020.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the funding of capital expenditures.

The affirmation follows a periodic review and ongoing surveillance of the company, including management's decision to indefinitely postpone any strategic restructuring, which may have involved the separation of one or more of the company's principal business units, S&P said.

"Despite substantial decreases in commodities prices and a resulting deterioration in financial metrics, the affirmation reflects our view that Williams will continue to demonstrate financial performance commensurate with our expectations," S&P analyst Michael Grande said in a statement.

Ratings reflect the company's stable cash flows from its pipeline assets, ample liquidity, strong competitive position in the Piceance Basin, its largely fee-based midstream business and good asset diversity, the agency said.

A weak commodity price environment for natural gas and NGL, capital-spending requirements that continue to outpace cash flow and potential cash flow pressures at midstream master limited partnership Williams Partners LP partially offset company strengths, the agency noted.

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