Birmingham, Ala.-based Southern Natural Gas Co. (SNG) is an affiliate of El Paso Corp. (BB/Watch Positive/--), the largest natural gas pipeline company in North America. We base the ratings on Houston-based El Paso Corp. 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 Corp. reflect a satisfactory business risk profile and an aggressive financial profile. (For more on business risk and financial risk, see "Business Risk/Financial Risk Matrix Expanded," published May 27, 2009, on RatingsDirect on the Global Credit Portal.) In May 2011, the company announced that it will spin off its exploration and production (E&P) segment into
