Fitch affirms Enterprise Products, Teppco

Fitch Ratings said it affirmed Enterprise Products Operating LLC's issuer default rating at BBB-, senior unsecured rating at BBB- and junior subordinated rating at BB.

The agency also said it affirmed Teppco Partners' issuer default rating at BBB-, senior unsecured rating at BBB- and junior subordinated rating at BB.

The outlook was revised to positive from stable.

Fitch also said it affirmed Teppco's roughly $54 million in legacy notes outstanding following its 2009 merger with Enterprise Products.

The ratings reflect the quality and diversity of the company's sizable portfolio of midstream assets and the resulting cash flow and earnings performance, the agency said, as well as the company's conservative management approach towards distributions and financings.

Enterprise continues to increase the fee-based component of its earnings while attempting to mitigate some of its commodity-price exposure through an active hedging program, Fitch said.

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