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Summary: Inergy L.P. Dec 11
Standard & Poors, December 2011
Standard & Poor's Ratings Services' rating on Inergy L.P. reflects the partnership's fair business profile and aggressive financial profile. Credit risks associated with the partnership's fair business risk profile include propane's exposure to weather and seasonal demand patterns, customer conservation, and margin variability. The partnership's growing midstream business that accounts for more than 40% of EBITDA and the propane segment's strong retail margins partially offset these risks. Inergy's aggressive financial profile reflects its high financial leverage and active acquisition strategy. The partnership's total adjusted debt to EBITDA at year-end 2011 is higher than we initially assumed--5.6x rather than 4.5x--because of a slower ramp-up of contracted capacity at natural gas storage asset Tres Palacios and higher customer conservation in the retail...
Companies mentioned in this report are: Inergy L.P.
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