+DJ Fitch Upgrades Williams Cos. Sr Unsec To B+ From B-
05/02/2003
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05-02-03 0916ET
PRESS RELEASE: Fitch Upgrades Williams Cos Sr Unsec To B+
The following is a press release from Fitch Ratings:
Fitch Ratings-New York-May 2, 2003: The Williams Companies, Inc.'s (WMB) senior unsecured debt rating has been upgraded to 'B+' from 'B-' by Fitch Ratings. In addition, Fitch has assigned a 'BB' rating to WMB's outstanding senior secured debt obligations. The senior unsecured debt ratings of WMB's three pipeline issuing subsidiaries, Transcontinental Gas Pipe Line Corp. (TGPL), Northwest Pipeline Corp. (NWP), and Texas Gas Transmission Corp. (TGT) have been upgraded to 'BB' from 'BB-'. The ratings for WMB, TGPL, and NWP are removed from Rating Watch Evolving. The Rating Outlook is Stable. TGT's rating remains on Rating Watch Positive pending completion of the sale of TGT to Loews Corp. (senior unsecured rated 'A' by Fitch, Rating Outlook Negative).
The rating action reflects WMB's improved financial flexibility including its strengthened liquidity position and reduced ongoing debt refinancing risk. Cash and available liquidity is expected to exceed $2 billion at year-end 2003 after taking into account scheduled debt maturities, pending asset sales, and planned subsidiary financings. Additional asset sales could provide further upside to WMB's liquidity profile. In addition, the company has demonstrated an ability to access the debt capital markets at the subsidiary level evidenced by the March 2003 issuance of senior unsecured notes at NWP. The stable outlook incorporates Fitch's expectation that WMB will be able to restructure or extend its upcoming secured debt maturities including a $900 million reserved based financing at Williams Production RMT Co and $400 million corporate letter of credit facility maturing in July 2003. |
