Summary: Southern Natural Gas Co. Jan 12

Standard & Poors, January 2012

Abstract
Birmingham, Ala.-based Southern Natural Gas Co. (SNG) is a wholly-owned subsidiary of El Paso Pipeline Partners L.P. (EPB), which in turn is a subsidiary of El Paso Corp. Kinder Morgan Inc. (KMI; BB/Stable/--) announced an agreement to purchase El Paso for $38 billion. When the transaction closes, El Paso will be a wholly owned subsidiary of KMI, and KMI management will have considerable influence over the company's financial and governance policies. Therefore, El Paso's ratings will be aligned with KMI's ratings. However, EPB's stand-alone credit profile is stronger relative to KMI's and El Paso's in our view. We expect that EPB's corporate credit rating to be, at a minimum, closely linked to those of El Paso and KMI. Once the...

Companies mentioned in this report are: Southern Natural Gas Co.
Action: Review

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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.

Southern Natural Gas Co.

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