S&P upgrades Williams

S&P said it raised its issuer credit rating on Williams Cos. Inc. to BBB from BB+ and removed its ratings on the company from CreditWatch, where they were placed with positive implications on May 17.

The outlook is negative.

At the same time, the agency raised the issue-level rating on the company’s senior unsecured debt to BBB from BB+. The associated recovery ratings were withdrawn because the issue-level ratings are now investment grade.

Williams completed its acquisition of Williams Partners LP in a stock-for-unit merger with Williams as the surviving public company.

The agency said the negative outlook reflects a belief that the benefits of a less complex corporate structure will be offset by the company's weaker consolidated financial risk profile.

“The merger has simplified WMB's corporate structure, which we believe could eventually help improve and broaden its access to the capital markets throughout the commodity cycle,” S&P said in a news release.

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