S&P uplifts Williams Partners, Williams Cos.

S&P said it raised its corporate credit and senior unsecured ratings on Williams Partners LP (WPZ) and its wholly owned subsidiaries, Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co. (Transco), to BBB from BBB-. S&P also raised the short-term rating on Williams Partners to A-2 from A-3.

The outlook is stable.

At the same time, S&P raised the corporate credit and senior unsecured ratings on the Williams Cos. Inc. (WMB) to BB+ from BB, and the preferred stock rating to B+ from B. The outlook is stable. The 4 recovery rating on the senior unsecured debt is unchanged and indicates an expectation of average (30%-50%; rounded estimate: 40%) recovery if a payment default occurs.

“The stable rating outlook on WPZ reflects our view that its credit profile will continue to benefit from the partnership's financial policy decisions to focus on reducing debt, maintaining a more robust distribution coverage ratio, and using excess cash flow to partly fund its growth initiatives,” said S&P credit analyst Michael Grande in a news release.

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