Fitch might lower Williams

Fitch Ratings said it placed the ratings for Williams Cos., Inc. (WMB), Williams Partners LP (WPZ) and Williams Partners Finance Corp. (WPFC) on Rating Watch Negative.

WMB's issuer default rating and senior unsecured ratings are BBB-. WPZ's issuer default rating and senior unsecured ratings are BBB. WPFC has a senior unsecured BBB rating.

WPZ's pipeline subsidiaries, Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co., LLC, are on negative watch as well. The pipelines both have an issuer default rating and senior unsecured ratings of BBB+.

Fitch said the actions follows Energy Transfer Equity, LP's (ETE) announcement that it will acquire all of the outstanding shares of WMB. WMB shareholders can elect to receive shares in Energy Transfer Corp. LP (ETC), a combination of shares in ETC and cash, or all cash.

Debt at WMB is to be assumed by Energy Transfer Equity and, once the transaction is complete, Fitch expects to equalize WMB's rating with Energy Transfer Equity’s.

ETE's issuer default rating is BB, positive watch. WMB's junior subordinated convertible notes are expected to remain two notches below its issuer default rating.

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