S&P Places Williams Cos. (WMB) on CreditWatch Developing

Standard & Poor's Ratings Services said today it affirmed its 'BB+' corporate credit and senior unsecured debt ratings on Williams Cos. (NYSE: WMB) (Williams) and placed them on CreditWatch with developing implications.

At the same time, we also affirmed the 'BBB' long-term corporate credit rating and 'A-2' short-term rating on Williams Partners L.P. (NYSE: WPZ) and placed them on CreditWatch developing.

We also affirmed the 'BBB' corporate credit ratings on operating subsidiaries Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co. LLC and placed them on CreditWatch developing.

The developing CreditWatch indicates that we could raise, lower, or leave the rating unchanged.

"We expect to resolve the developing CreditWatch when we obtain greater clarity into recent events," said Standard & Poor's credit analyst Nora Pickens.

Williams announced that its board of directors is considering several alternatives following receipt of an unsolicited proposal to acquire Williams in an all-equity transaction at a slated per share price of $64, a 32% premium to the Williams share closing price on June 19, 2015. The offer would be contingent on the termination of the pending merger between Williams and Williams Partners. Williams also stated that the $64 offer significantly undervalues the company.

In a separate press release, Energy Transfer Equity (ETE) confirmed that it had proposed to acquire Williams at $64 per Williams share.

We currently cannot assess the probability of Williams' next steps, including whether the previously announced merger with Williams Partners would go through or whether the ETE proposal may be ultimately considered. As a result, we placed our ratings on Williams on CreditWatch developing until we gain greater clarity.

Our ratings on ETE and its related corporate entities are unaffected at this time.

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