S&P raises Williams

Standard & Poor's said it raised its corporate credit rating on diversified energy company The Williams Cos. Inc. and its subsidiaries, Northwest Pipeline Corp., Transcontinental Gas Pipe Line Corp. and Williams Production RMT Co., to BB- from B+.

The outlook is positive.

S&P said the upgrade reflects its conclusion that Williams' financial metrics have improved significantly as a result of deveraging and improved operating performance.

The positive outlook reflects the potential that the rating could be raised over the next two years if the company achieves the forecast financial targets, the agency added, noting that 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 reduced debt by more than $6 billion, its improving liquidity and the stability of its FERC-regulated natural gas pipeline business, S&P said.

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