TEXT-S&P release on Main Street Natural Gas
(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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