Moody's may upgrade Regency Energy

Moody's Investors Service said it placed the ratings of Regency Energy Partners LP and Regency Gas Services LP, including the B1 corporate family and probability-of-default ratings, under review for possible upgrade following the company's launch of a public offering of 10 million common units.

The rating review follows the change last month in Regency's outlook to developing from negative when GE Energy Financial Services acquired a controlling stake in Regency's general partner sponsor and 32% of its limited partnership units for $603 million.

Moody's plans to conclude the review in a month or so after the consummation of the equity offering and the repayment of debt with the proceeds. If the offering is successful, Regency will reduce debt by about 40% from March 31 levels, and the review could result in a one-notch upgrade in the corporate family rating.

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