S&P: Williams, El Paso on comeback trail

Standard & Poor's said in a report that the credit ratings assigned to diversified energy companies embody numerous qualitative and quantitative factors, with no single factor governing a particular rating, noting that a good example of this multifaceted approach to ratings can be seen in two of the biggest such companies in the United States, The Williams Cos. Inc. (BB-/positive/B-2) and El Paso Corp. (B+/positive/B-3).

The agency said that the companies exhibit many similar characteristics, including comparable ratings and outlooks, noting that both Williams and El Paso have survived near-death experiences.

Aggressive asset rationalization and adequate bank lines provided just enough liquidity for the companies to right-size their operations, pay down debt and set sail on a new course since veering into trouble in the beginning of this decade, the agency said.

"Williams is a little further along on the ratings restoration front, but both companies are still far away from returning to investment-grade," said S&P credit analyst Ben Tsocanos.

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