Fitch puts Williams on watch

Fitch Ratings said it placed Williams Cos., Inc.'s BBB- issuer default rating, BBB- senior unsecured debt rating and BB junior subordinated convertible debentures on Rating Watch negative.

The action follows the proposal by Williams to acquire Southern Union Co. for $39.00 per share in cash, the agency added.

Fitch affirmed with a stable outlook Williams Partners LP's BBB- issuer default rating and BBB- senior debt rating.

The Rating Watch placement reflects the substantial uncertainty surrounding the details of the proposed acquisition and pro forma operating structure, transactional risk and the potential for additional leverage at Williams, the agency added.

The affirmations reflect the limited direct effect an acquisition of Sothern Union would be expected to have on the credit profiles of these entities, the agency said.

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