On Feb. 26, 2003, Standard&Poor's Ratings Services assigned its 'B+' rating to natural gas pipeline Southern Natural Gas Co.'s (SNG) proposed $400 million senior unsecured notes offering. The proceeds will be used to repay existing intercompany obligations and general corporate purposes. The outlook is negative. SNG's Houston, Texas-based parent El Paso Corp. has about $17 billion of on-balance-sheet debt. The ratings for SNG are based on the strength of the consolidated entity; thus SNG's ratings are expected to mirror those of El Paso. Of paramount importance to El Paso's ability to persevere current conditions is renegotiating its credit facilities and regaining access to capital markets at the holding company level. El Paso's ability to refinance its obligations will
