S&P places Southern Union on negative watch

Standard & Poor's said it affirmed the BBB- corporate credit rating on Southern Union Co. and its operating subsidiary, Panhandle Eastern Pipe Line LP.

The agency also said it revised the CreditWatch listing to negative from developing, where it was placed in July.

Williams Cos. Inc. no longer has an outstanding bid to acquire Southern Union, S&P said, and the likelihood that Energy Transfer Equity LP will acquire Southern Union has increased.

If Energy Transfer's bid is successful, the agency said it will likely lower the ratings on Southern Union.

The downgrade would reflect Southern Union's ownership by a lower-rated parent company, S&P said.

The CreditWatch listing will be resolved if Energy Transfer completes its proposed acquisition of the company, the agency said.

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