TEXT-S&P release on Regency Gas Services LP

(The following statement was released by the ratings agency)

Sept 12 - Standard & Poor's Ratings Services today raised its corporate
credit rating on Regency Gas Services LP to 'BB-' from 'B+'. At the same time,
we affirmed the 'B' rating on Regency Energy Partners LP's senior unsecured
notes maturing in 2013, and withdrew the 'BB' rating on Regency Gas' $250
million senior secured credit facility. In addition, all of the ratings were
removed from CreditWatch with positive implications, where they were placed on
July 24, 2007. The outlook is stable.

The rating actions reflect the favorable credit implications we expect from
ownership by GE Energy Financial Services and the deleveraging effect of the
company's equity issuance in July. The rating on the unsecured notes remains
the same, due to the double notching effect of the upsized senior secured
revolving credit facility (unrated).

The ratings on Regency reflect a weak business risk profile and aggressive
financial risk profile. Regency Gas Services LP is the operating subsidiary of
Regency Energy Partners, a master limited partnership (MLP) engaged in the
gathering, processing, marketing, and transmission of natural gas and natural
gas liquids (NGLs) in northern Louisiana, Texas, and the Midcontinent region.

"The stable outlook on Regency reflects a stronger financial profile,
combined with the influence of owner GE Energy Financial Services, somewhat
offset by the uncertainty associated with possible future drop-down
strategies," noted Standard & Poor's credit analyst Plana Lee. Further upward
ratings movement is possible through stronger cash flow performance, prudently
financed acquisitions of predominantly fee-based assets, and ongoing
implementation of the company's hedging program.

"Conversely, ratings could be lowered due to lower-than-expected cash flows
due to disappointing volumes and commodity price sensitivity, or aggressively
financed acquisitions that detract from credit protection measures," she
continued.