S&P ups Williams, units view to positive

Standard & Poor's said it affirmed its B+ corporate credit ratings on The Williams Cos. Inc. and its subsidiaries, Northwest Pipeline Corp., Transcontinental Gas Pipe Line Corp. and Williams Production RMT Co., and revised the outlook on the companies to positive from stable.

The outlook revision reflects that S&P could raise its rating on Williams by one notch within the next one to two years if the forecast financial targets are achieved. The company appears to be on track toward achieving the forecast, the agency said.

S&P said the ratings reflect the Williams' highly leveraged financial condition, the uncertain financial performance of its power subsidiary and the consolidated creditworthiness of its own operations and those of its subsidiaries. The risks are partially offset by the substantial completion of its stated debt-reduction plan, which has reduced debt by over $6 billion, an improving liquidity profile and the stability of its FERC-regulated natural gas pipeline business.

Ratings affirmed and revised to a positive outlook include The Williams Cos. Inc.'s corporate credit rating at B+, senior secured revolving credit facility at BB- with a recovery rating of 1, the senior unsecured debt at B+, subordinated debt at B- and preferred stock at CCC+; Northwest Pipeline Corp.'s corporate credit rating at B+ and senior unsecured debt at B+; Transcontinental Gas Pipe Line Corp.'s corporate credit rating at B+ and senior unsecured debt at B+; and Williams Production RMT Co.'s corporate credit rating at B+ and senior secured bank loan at BB.

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