BANGALORE (Thomson Financial) - Standard & Poor's Ratings Services said it
affirmed its 'BBB-' ratings on Houston-based pipeline and midstream energy
company TEPPCO Partners LP, after it completed its second acquisition of a
marine transport business. The outlook is stable, the ratings agency said.
S&P said TEPPCO's rating reflects its satisfactory business risk profile and
its aggressive financial profile.
Key credit factors include the company's relatively stable cash flows, a
diverse customer mix and limited commodity risk, S&P said.
These are offset by a focused midstream growth strategy, weak distribution
coverage and slightly high debt-leverage metrics, the ratings agency said.
S&P added that the stable outlook reflects TEPPCO's projected new
investments that will produce earnings and cash flow to improve the company's
distribution and leverage levels.
On Feb 4 Teppco said it entered the marine transport business with the
acquisition of assets from Houma, Louisiana-based Cenac Towing Inc and Cenac
Offshore LLC for about 500 mln usd.
TFN.newsdesk@thomson.com
kal/alo
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