U.S. midstream energy master limited partnership Energy Transfer Equity L.P.'s (ETE) stand-alone credit measures pro forma for its $38 billion merger with The Williams Cos. Inc. are considerably weaker than our previous expectations when the deal was announced in September 2015. We are placing our 'BB' corporate credit and senior secured debt ratings on ETE on CreditWatch with negative implications. The '4' recovery rating on the senior secured debt is unchanged. Our 'BBB-' corporate credit rating and stable outlook on master limited partnership (MLP) Energy Transfer Partners L.P. and our ratings and outlooks on operating subsidiaries Sunoco L.P., and Sunoco Logistics Partners L.P. are unaffected by this action. We expect to resolve the CreditWatch listing upon close of the merger
