TEXT-S&P release on Main Street Natural Gas

Wed Jun 4, 2008 10:40pm BST
 
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 (The following statement was released by the rating agency)
 June 4 - Standard & Poor's Ratings Services today lowered its senior
secured debt rating on Main Street Natural Gas Inc.'s $709.06 million series
2008A gas project revenue bonds due July 15, 2038 to 'A' from 'A+'. The outlook
is negative.
  This rating action reflects the June 2, 2008 downgrade of Lehman Brothers
Holdings Inc. (LBHI, A/Negative/A-1) which guarantees the obligations of Main
Street's gas supplier under the series 2008 transaction. The rating actions on
these companies primarily reflect our concern that the pace and extent of
earnings improvement could be considerably more muted than we previously
assumed. The rating on Main Street's 2008A transaction is currently tied to
the rating of LBHI, which guarantees the performance of the gas supplier and
is the lowest-rated counterparty with obligations that are critical for the
transaction to function as structured.
  "The negative outlook on Main Street's Series 2008A bonds reflects the
current rating and outlook on LBHI as guarantor of Lehman Brothers Commodity
Services Inc.'s various obligations in the transaction," said Standard &
Poor's credit analyst Kenneth L. Farer. "Standard & Poor's could revise the
rating and outlook on the transaction to the extent that we revise our rating
or outlook on LBHI," he continued.
  Complete ratings information is available to subscribers of
RatingsDirect, the real-time Web-based source for Standard & Poor's credit
ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings
affected by this rating action can be found on Standard & Poor's public Web
site at www.standardandpoors.com; select your preferred country or region,
then Ratings in the left navigation bar, followed by Credit Ratings Search.
 (New York Ratings Team)


 
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