Moody's: Plains All American on review for upgrade

Moody's Investors Service said it placed Plains All American Pipeline LP's ratings under review for upgrade and withdrew Plains Marketing LP's ratings after replacement of PMLP's rated senior secured guaranteed bank facility with an unrated senior unsecured guaranteed facility.

The review will be completed in first quarter 2004. Moody's also removed the notching of Plains All American's senior unsecured notes, moving the note rating up one notch to match the Ba1 senior implied rating to reflect replacement of Plains Marketing's senior secured core bank revolver with an unsecured core revolver.

Moody's said the ratings are supported by rising scale and regional diversification; reduced volatility due to the rising scale of fee-based versus the more volatile trading and marketing business, and (due to rising scale elsewhere) the reduced impact on Plains All American's EBITDA and All-American Pipeline throughput from declining Point Arguello and Santa Ynez offshore California production; reduced leverage; and new Basin pipeline volumes captured by Plains All American's Rancho line shutdown.

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