Fitch affirms Williams Cos.

Fitch Ratings said it affirmed Williams Cos., Inc.'s (WMB) long-term issuer default rating of BB+ and the senior unsecured rating of BB+/RR4.

The outlook is stable.

Williams is the controlling owner of a group of companies operating in the midstream sector of the energy industry. Williams’ main subsidiary, via a 74% limited partnership stake and a non-economic general partnership stake, is Williams Partners LP (WPZ; BBB-/positive).

“WMB's ratings reflect its immense scale, geographic diversity of operations, and predominantly fee-based and long-term contracts that underpin its operations,” Fitch said in a news release.

“Concerns for WMB include structural subordination of WMB-level debt to approximately $16.5 billion of subsidiary debt, construction risk, and the ongoing effect on volumes of a lengthy trough period in prices for natural gas and natural gas liquids.”

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