The ratings on 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 El Paso. Standard&Poor's raised the ratings and revised the outlook on El Paso and its subsidiaries to positive from stable in June 2005, recognizing the considerable progress that the company has made in reducing exposure to unregulated operations, improving liquidity ahead of large debt maturities, and a leveling of declines at the exploration and production (E&P) business. El Paso has maintained an aggressive pace of selling noncore assets since management announced its restructuring plan two years ago. The company closed or announced transactions
