Summary: Inergy L.P. Dec 11

Standard & Poors, December 2011

Abstract
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.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

Inergy L.P.

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