CORPORATESISSUER COMMENT 23 JUNE 2015KINDER MORGAN,INC (KMI)Moodys Senior Unsecured Rating Baa3Moodys Outlook STABond-Implied Rating Baa3CDS-Implied Rating Ba1EDF-Implied Rating AaaAs of 6/19/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewKinder Morgan, Inc. : All Market-Implied Ratings Advance The current CDS-, bond- and EDF'-implied ratings for Kinder Morgan are all better than their levels one year ago.The bond-implied rating for Kinder Morgan was Ba3 a year ago (Figure 1). It climbed to Baa2 on multiple dates in April and May. Today it stands at Baa3. The CDS-implied rating is Ba1. It was Ba2 a year ago and has been as high as Baa3 on many days over the last 12 months. Kinder Morgans EDF-implied rating has been Aaa since March 9, six notches better than its A3 of a year ago.FIGURE 1. KINDER MORGAN: MOODYS AND MARKET-IMPLIED RATINGS, LAST 365 DAYS (DAILY DATA)MOODY'S ANALYTICS CORPORATES2 23 JUNE 2015 MARKET SIGNALS REVIEW : KINDER MORGAN, INC. : ALL MARKET-IMPLIED RATINGS ADVANCENote: Figures 1, 2 and 3 reflect Moodys ratings action on November 21, 2014; please see discussion below.According to our ratings gap-conditioned transition matrices, companies rated Baa3 with a bond-implied rating of Baa3 outperformed the broad market 31% of the time over the following 12 months, matched the markets performance 34% of the time, and underperformed the broad market 34% of the time.Readers will recall that when a market-implied rating rises, as Kinder Morgans CDS, EDF- and bond-implied ratings all did over the last year, the underlying securities have outperformed the broad market. 1Kinder Morgans EDF-implied ratings gap stands at +9 notches, reflecting Kinder Morgans one-year EDF measure of 0.0...
