Moody's rates Regency notes Ba3

Moody's Investors Service said it assigned a Ba3 (LGD4) rating to Regency Energy Partners LP and Regency Energy Finance Corp.'s senior notes due 2022. The outlook is stable.

Proceeds will be used to repay borrowings outstanding under Regency's revolving credit facility.

The agency said Regency’s Ba2 corporate family rating reflects its large size and scale, notwithstanding the financial constraints associated with its master limited partnership structure; its business and geographic diversification and its high level of fee-based income derived from recent expansions and acquisitions.

Moody’s said the rating also recognizes Regency's rapid growth and evolving business mix profile, the execution risk associated with a rapid series of acquisitions and its elevated debt leverage. Regency's leverage at the end of 2013 exceeded 6 times.

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