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TEXT-S&P: Inergy, WGL Holdings ratings unaffected by plans
March 1, 2012 / 10:27 PM / in 6 years

TEXT-S&P: Inergy, WGL Holdings ratings unaffected by plans

 (The following statement was released by the rating agency)	
 March 1 - Standard & Poor's Ratings Services said today that its
ratings on U.S. midstream energy partnership Inergy L.P. (BB-/Stable/--)
and U.S. natural gas distribution company WGL Holdings Inc. 
(A+/Stable/A-1) are not affected by their plan to jointly market and develop
with affiliates of UGI Corp. (not rated) Commonwealth Pipeline, an interstate
natural gas pipeline. The pipeline project will cost about $1 billion and we
expect it to be funded equally among the sponsors, which should minimize capital
markets and liquidity risk in our opinion. In addition we expect affiliates of
UGI and WGL to be anchor shippers on the pipeline, which will provide some cash
flow visibility. A key credit consideration is the ability of Inergy's midstream
subsidiary, Inergy Midstream L.P., to complete 	
construction on-time and on-budget to avoid pressure on Inergy L.P.'s 	
consolidated credit profile. The pipeline, which has an expected in-service 	
date of 2015, will connect Inergy Midstream's MARC I pipeline in Lycoming 	
County, Pa., through UGI's utility service areas in central and eastern 	
Pennsylvania to WGL's gas distribution system near Rockville, Md.	
 (New York Ratings Team)	

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