Fitch's primary credit concern for FGP and FGLP
has been weak debt leverage and interest coverage metrics.
0x, respectively; these same unadjusted ratios for FGLP were 4.
The Stable Outlook reflects the expectation that credit ratios are not likely to deteriorate beyond current levels in the near term and that FGLP should also be able to meet its $109 million August 2005 debt maturity through sales of nonstrategic assets, new equity, or a combination of both.
RINO), which merged the company's propane cylinder exchange assets into FGLP.
The current ratings of both FGP and FGLP are supported by the underlying strength of the company's retail propane distribution network, broad geographic reach, and track record of customer retention.
which, upon completion of the aforementioned merger and contribution, were subsequently merged into FGLP and Ferrellgas Finance Corp.
In addition to the debt offering, FGLP utilized a portion of its bank credit facility to finance the $343 million transaction.
FGP's structural subordination to $696 million of debt at FGLP
is reflected in its lower rating.