Moody's rates El Paso Corp. loans B1

Moody's Investors Service said it assigned B1 senior secured ratings to El Paso Corp.'s new $1.25 billion revolving credit facility and $500 million deposit loan facility.

The borrowers under the facilities are El Paso Corp. and three of its pipeline subsidiaries: Colorado Interstate Gas Co., El Paso Natural Gas Co. and Tennessee Gas Pipeline Co.

The B1 ratings reflect the substantial value of the collateral, which consists of the equity of the above mentioned pipelines, the agency said.

The B1 ratings also reflect the effective subordination of the pipeline equity pledged under the credit agreements to the claims of the Ba2-rated senior unsecured pipeline bonds.

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