Moody's might downgrade NGPL

Moody's Investors Service said it placed under review for possible downgrade the Baa3 senior unsecured debt rating of NGPL PipeCo. LLC.

The review follows a tentative settlement reached by NGPL on the Federal Energy Regulatory Commission's Section 5 investigation into the company's rates. The agency said the new rates under this settlement are expected to result in materially lower cash flow for NGPL.

Against some $3 billion of long-term debt, Moody's estimates that NGPL's funds flow from operations-to-debt ratio could decline significantly from the 11% recorded for the last 12 months ended December to levels that Moody's would not consider to be commensurate with an investment-grade rating.

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