Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

MOODY'S PLACES WILLIAMS COMPANIES' DEBT RATINGS (Sr. Imp. B2) UNDER REVIEW FOR POSSIBLE UPGRADE. UPGRADES WILLIAMS' SPECULATIVE GRADE LIQUIDITY RATING TO SGL-2.

23 Jul 2004
MOODY'S PLACES WILLIAMS COMPANIES' DEBT RATINGS (Sr. Imp. B2) UNDER REVIEW FOR POSSIBLE UPGRADE. UPGRADES WILLIAMS' SPECULATIVE GRADE LIQUIDITY RATING TO SGL-2.

Approximately $11.3 billion of debt affected

New York, July 23, 2004 -- Moody's Investors Service placed The Williams Companies' (Williams or WMB, Senior Implied B2) debt ratings under review for possible upgrade. Moody's also upgraded Williams' speculative grade liquidity rating to SGL-2 from SGL-3. The SGL-2 rating indicates our expectation of good liquidity for the 12 months ending June 30, 2005.

The review for possible upgrade reflects the progress that Williams has made relative to the six signposts we laid out in our Credit Opinion of May 18, 2004. In particular, Williams has substantially improved its liquidity, primarily through $1.5 billion in new credit facilities closed in April and May; the company used cash from asset sales and cash previously posted as margin to prepay about $1.2 billion of debt through a cash tender offer in June; WMB announced a definitive agreement to sell three straddle plants in Canada that should generate about $500 million, net of costs and currency adjustments, and close later in the third quarter; and the company moved toward reducing its contingent liabilities through FERC approval of the California utilities settlement received earlier in July.

The review will also focus on these signposts, including Williams' ability to generate durable and sustainable operating cash flow and free cash flow (net of capex) from its core natural gas businesses. We will review the company's second quarter results and work with management to understand its near- to medium-term cash flow from operations, working capital requirements and capital spending plans. Moody's will also review the cash flow/cash requirements of Williams' non-core power business and what impact that may have on the rating.

The SGL-2 rating reflects improvements in Williams' liquidity primarily as a result of new bank facilities that closed in the second quarter, which replaced the company's $800 million cash-collateralized credit facility. In April, Williams obtained $500 million senior unsecured, five-year credit facilities supported by institutional investors. The new facilities freed up about $500 million in cash, including $400 million that had collateralized letters of credit and $100 million of cash posted as margin. In May 2004, Williams closed a $1 billion secured three-year credit facility, which is secured by midstream assets and is guaranteed by Williams Gas Pipeline, the holding company for Williams' FERC regulated natural gas pipelines. Williams' SGL-2 rating is also supported by WMB's improving operating cash flow offset somewhat by the risk that the company remains free cash flow positive (after capex). The rating also considers other risks to WMB's liquidity, in particular Williams' power business and its enterprise risk management. This includes the company's potentially large and hard to predict working capital needs related to hedging gas production, gas processing contracts, and power supply contracts.

At the end of the second quarter, Williams had approximately $1.7 billion total liquidity, consisting of about $900 million of cash and $800 million of undrawn availability under its $1 billion credit facility. WMB has said it intends to maintain $1 to $1.3 billion of total liquidity. Williams used $1.2 billion of the $2 billion in cash it had at the end of the first quarter to retire outstanding debt through a tender offer. Moody's estimates that cash flow from operations over the next twelve months will be adequate to meet projected capex, minimal debt maturities and small dividend payments.

Williams has not released its second quarter financial statements or its compliance certificate for the new bank facilities. However WMB estimates that even in a down case scenario, it would be able to fully draw on its available capacity under its credit facilities and remain within the financial covenants. Williams has very few non-core assets left to sell and we expect asset sales proceeds will not contribute material cash after the third quarter 2004. The most significant remaining assets to be sold are the Canadian straddle plants.

The following ratings were placed under review: Williams's B2 Senior Implied, B3 Senior Unsecured Issuer, B3 Senior Unsecured debt and (P)B3/(P)Caa2/(P)Caa3 Senior Unsecured/Subordinated/Preferred Shelf. Williams Capital I Caa2 Trust Preferred Stock and (P)Caa2 Trust Preferred Shelf. Williams Capital II (P)Caa2 Trust Preferred Shelf. MAPCO Inc. B3 Senior Unsecured debt. Northwest Pipeline Corporation B1 Senior Unsecured debt and (P)B1 Senior Unsecured Shelf. Transco Energy Company B1 Senior Secured debt. Transcontinental Gas Pipe Line Corporation B1 Senior Unsecured debt and (P)B1 Senior Unsecured Shelf.

Based in Tulsa, Oklahoma, The Williams Companies, Inc. is a diversified energy company.

New York
John Diaz
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Steven Wood
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
Moodys.com