NY -- Standard&Poor's CreditWire 4/3/98 -- Standard&Poor's today assigned its preliminary single-'A'-minus rating to Southern Natural Gas Co.'s $500 million Rule 415 shelf registration of debt securities. The corporate credit rating is single-'A'-minus. About $400 million of long-term debt is currently outstanding at this Birmingham, Ala.-headquartered interstate pipeline company. Ratings on Southern Natural Gas, a natural gas pipeline unit of Sonat Inc., are strongly influenced by the consolidated credit quality of the parent, which incorporates the greater business risk at Sonat's sizable gas production operations and energy marketing activities. The pipeline's high average business position recognizes a stable firm customer base and limited pipeline competition that provides ample opportunity to generate a steady cash flow. Moderate
