Research Update: Energy Transfer Equity L.P. Ratings Placed On CreditWatch Negative On Merger Plan

We have reassessed the factors that determine our notching differential between the rating on U.S. midstream energy master limited partnership (MLP) Energy Transfer Equity L.P. (ETE) and those on its underlying operating subsidiaries after Energy Transfer Partners L.P. (ETP) and Sunoco Logistics Partners L.P. (SXL) announced they plan to merge with the acquisition of ETP by SXL in a unit-for-unit transaction. 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. We expect to resolve the CreditWatch listing upon close of the merger between ETP and SXL, at which time we expect to lower our rating on ETE by one

...We have reassessed the factors that determine our notching differential between the rating on U.S. midstream energy master limited partnership (MLP) Energy Transfer Equity L.P. (ETE) and those on its underlying operating subsidiaries after Energy Transfer Partners L.P. (ETP) and Sunoco Logistics Partners L.P. (SXL) announced they plan to merge with the acquisition of ETP by SXL in a unit-for-unit transaction....

Research Update