S&P assigns BBB- to Energy Transfer notes

Standard & Poor's said it assigned its BBB- rating to Energy Transfer Partners LP's proposed $1 billion senior unsecured note issuance.

The outlook is stable.

S&P's rating on Energy Transfer Partners reflects the strong competitive position of its energy pipeline, processing, and storage businesses; its increasing scale and diversity; and the stability of its mostly fee-based cash flows.

Somewhat offsetting these strengths are weak performance at its intrastate natural gas business; weak distribution coverage; elevated financial leverage, which includes the debt at its general partner and parent company, Energy Transfer Equity LP; and its aggressive growth strategy, the agency said.

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