Houston-based oil and gas pipeline company Enterprise Products Partners LP (EPD) has agreed to merge with its general partner, Enterprise GP Holdings LP (EPE). The merger simplifies the Enterprise family corporate structure and should result in a lower cost of capital due to the elimination of incentive distribution rights (IDRs). We are affirming our ratings, including our 'BBB-' corporate credit rating, on EPD. The outlook remains positive. While EPD's debt to EBITDA measures will worsen slightly in the near term, we expect them to remain relatively conservative. Enterprise system's debt leverage should modestly improve. We are affirming our ratings on EPE, including the 'BB-' corporate credit rating. We expect EPE to repay its debt and to withdraw our ratings on
