Southern Natural Gas Co. (SNG) is an affiliate of El Paso Corp. (BB/Negative/--), the largest natural gas pipeline company in North America. Standard&Poor's Ratings Services bases its ratings on Houston-based El Paso and its subsidiaries, including SNG, on our consolidated credit methodology, resulting in the same corporate credit rating for the holding company and each of its subsidiaries. The ratings on El Paso reflect a satisfactory overall business risk profile, which includes the stability of the company's interstate natural gas pipeline systems, partly offset by the risks associated with its exploration and production (E&P) segment and a significantly improved, although still aggressive, financial profile. El Paso's pipeline network produces stable cash flows due to favorable regulation by the
