Moody's may up Williams

Moody's Investors Service said it placed The Williams Cos.' (senior implied B2) debt ratings under review for possible upgrade. Moody's also upgraded Williams' speculative grade liquidity rating to SGL-2 from SGL-3.

Moody's said the review for possible upgrade reflects the progress that Williams has made relative to the six signposts Moody's laid out in its credit opinion of May 18. In particular, Williams has substantially improved its liquidity, primarily through $1.5 billion in new credit facilities closed in April and May; the company used cash from asset sales and cash previously posted as margin to prepay about $1.2 billion of debt through a cash tender offer in June; Williams announced a definitive agreement to sell three straddle plants in Canada that should generate about $500 million, net of costs and currency adjustments, and close later in the third quarter; and the company moved toward reducing its contingent liabilities through FERC approval of the California utilities settlement received earlier in July.

The following ratings were placed under review: Williams's B2 senior implied rating, B3 senior unsecured issuer rating, B3 senior unsecured debt; Mapco Inc.'s B3 senior unsecured debt rating; Northwest Pipeline Corp.'s B1 senior unsecured debt rating; Transco Energy Co.'s B1 senior secured debt rating; and Transcontinental Gas Pipe Line Corp.'s B1 senior unsecured debt rating.

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