Southern Natural Gas Co. (SNG) is an affiliate of El Paso Corp. (BB/Stable/--), the largest natural gas pipeline company in North America. The ratings on Houston-based El Paso and its subsidiaries, including SNG, are based 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 business risk profile and an aggressive financial profile, which incorporates the stability of the company's interstate natural gas pipeline systems (about two-thirds of projected 2010 cash flow), partly offset by the risks associated with its E&P segment (about one-third of projected 2010 cash flow). El Paso's pipeline network, whose throughput accounts for about 30% of U.S.
