NEW YORK (Standard&Poor's) Feb. 26, 2003--Standard&Poor's Ratings Services said today it 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 primarily to repay existing intercompany obligations. 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," said Standard&Poor's credit analyst William Ferara. 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
