Supportive regulation, Stable revenue stream, and Serves growing markets. Weak credit quality of parent El Paso Corp. and possibility Southern Natural could be leveraged to support parent, Stiff competition, and Moderate customer concentration. The ratings on natural gas pipeline company Southern Natural Gas Co. (SNG), a subsidiary of El Paso Corp., are based on the credit quality of the consolidated entity. Thus, the ratings on SNG are expected to mirror those of parent El Paso. The ratings on Houston, Texas-based El Paso reflect a weak business profile burdened by failed unregulated power ventures and the challenges of rehabilitating poorly performing exploration and production (E&P) operations, coupled with a highly overleveraged capital structure and considerable debt maturities through 2007. A history
