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Fitch Lowers Ratings For Williams Partners LP

The Associated Press

SIOUX FALLS, S.D. (AP) — Fitch Ratings on Tuesday said it has downgraded the issuer default and senior unsecured debt ratings for Williams Partners LP, noting the global recession and drop in demand and prices for natural gas liquids has significantly reduced the company's profitability.

Fitch downgraded the issuer default rating for the partnership, which owns natural gas sector properties, and its Williams Partners Finance Corp. to "BB" from "BB+" and its $750 million senior unsecured debt to "BB" from "BB+." The rating outlook is "Stable."

Fitch said the changing economic conditions have resulted in weakening credit measures and lower distributable cash flow for Williams Partners, Tulsa, Okla.

The ratings agency said that given the current and expected pricing environment for natural gas and natural gas liquids, the company's 2009 operating cash flows will be materially lower than in the previous year. If energy prices and margins remain low for a prolonged period, Williams Partners' access to equity capital markets could be impaired, Fitch said.

Williams Cos. owns 21.6 percent of Williams Partners' limited partnership interest and its 2 percent general partner interest.

Shares of Williams Partners gained 10 cents to $18.65 in morning trading. The stock has traded in the range of $8.54 to $33.69 during the past year.