Moody’s could lift Williams

Moody's Investors Service said it placed the Baa3 senior unsecured ratings of Williams Cos., Inc. under review for upgrade following the company's announced agreement to purchase all of the public outstanding common units of Williams Partners, LP (WPZ).

The agency also affirmed Williams Partners’ Baa2 senior unsecured ratings, Prime -2 short term rating, and the Baa1 ratings of Williams Partners’ wholly owned pipeline subsidiaries, Northwest Pipeline and Transcontinental Gas Pipeline Co.

The outlooks for Williams Partners, Northwest and Transcontinental Gas remain stable.

"The announced transaction will simplify Williams' capital structure and reduce the company's cost of capital," Moody’s senior vice president Pete Speer said in a news release.

"The anticipated Baa2 rating for the combined Williams and WPZ is dependent on Williams' successful delivery of its forecasted cash flow growth and its commitment to using enough equity funding of its growth capital spending to reduce its currently high leverage."

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