NEWS

WIRES

OTHER

Fitch Affirms Kinder Morgan Energy Partners' and Kinder Morgan Kansas' IDRs; Outlook Stable

--Significant scale and scope of operations;
--Geographic and functional diversity of assets;
--Successful track record in acquiring, expanding, financing and operating energy assets;
--Predictable earnings and cash flow generated from natural gas and refined products pipelines;
--Expectations for modestly improving credit metrics in 2011 with adjusted Debt to EBITDA to approximate 4.0 times (x) or below for the year.

Other considerations and credit concerns include:
--KMP's relationship with KMK, owner of its general partner interest;
--Exposure to interest rates on approximately $5.4 billion of variable-rate debt;
--Modestly negative effects from weak economies on asset utilization;
--Aggressive expansion spending;
--Exposure to changes in commodity prices and volumes for its CO2 business segment.

In February 2011, certain existing shareholders of Kinder Morgan, Inc. (KMI, formerly Kinder Morgan HoldCo LLC) sold approximately 109.8 million shares of KMI's common stock in an initial public offering. Shares owned by the public represent approximately 15.5% of total shares outstanding. The stock offering is not expected to have an effect on either KMP's or KMK's ratings.

KMK , a wholly owned subsidiary of KMI, has ownership interests in two companies: the 2% general partnership (GP) and approximately 11% of the limited partner interest in KMP and 20% of NGPL PipeCo LLC (NGPL; rated 'BB+', with a Stable Outlook by Fitch). Distributions from KMP and NGPL contributed approximately 97% and 3% of KMK's 2010 cash flow, respectively.

Distributions received by KMK approximated $1.06 billion in 2010 and are expected to strengthen in future years as KMP's distributable cash flow increases. KMK's debt levels are likely to be maintained at between $3 billion and $3.5 billion. Fitch estimates KMK's standalone parent company debt to cash flow to approximate 2.5x for 2011.

Fitch affirms the following:

Kinder Morgan Energy Partners, L.P.
--IDR at 'BBB';
--Senior unsecured debt at 'BBB';
--Short term IDR at 'F2'
--Short term debt (Commercial Paper) at 'F2'.

Kinder Morgan Kansas, Inc.
--IDR at 'BB+';
--Secured notes and debentures at 'BB+';
--Secured revolving credit facility at 'BB+'.

Kinder Morgan Finance Company, LLC
--Secured notes at 'BB+'.

KN Capital Trust I
--Trust preferred at 'BB-'.

KN Capital Trust III
--Trust preferred at 'BB-'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' Aug. 16, 2010;
--'Rating Master Limited Partnerships' Feb. 12, 2008;
--'U.S. Power and Gas Comparative Risk (COR) Evaluation and Financial Guidelines' Aug. 22, 2008.

Applicable Criteria and Related Research:
Corporate Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646
Rating Master Limited Partnerships
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=371982
U.S. Power and Gas Comparative Operating Risk (COR) Evaluation and Financial Guidelines
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=338030

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Fitch Ratings
Primary Analyst
Ralph Pellecchia, +1-212-908-0586
Senior Director
Fitch Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Peter Molica, +1-212-908-0288
Director
or
Committee Chair
Donna McMonagle, +1-212-908-0258
Managing Director
or
Media Relations:
Brian Bertsch, New York, +1-212-908-0549
brian.bertsch@fitchratings.com