TEXT-Fitch: top-10 differences between MLPs and corporate issuers in U.S. energy sector

Tue Feb 19, 2013 1:24pm EST

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Feb 19 - Fitch Ratings expects continued strong growth of master limited
partnerships (MLPs) in the energy sector over the next several years, driven by
the ongoing hunt for yield in an era of rock bottom interest rates and MLPs'
relatively large and tax-advantaged payouts. MLP growth will also continue to be
driven by the high levels of infrastructure spending associated with U.S. shale
plays and increased acceptance of what types of businesses can be fit into an
MLP structure.

In response to this trend, Fitch is publishing research aimed at newer investors
in an effort to help them understand some of the unique attributes and risks of
MLPs as compared to corporate issuers.

Highlighted in this report are the top-10 structural and operating differences
between MLP and corporate issuers. Key differences include: tax efficiency;
asset mix; distribution policy; financial flexibility; cost of capital;
governance; and growth strategies, among others. Key differences are discussed
with a focus on the impact the difference has on credit quality.

The full report 'The Top Ten Differences between MLPs and Corporate Issuers' is
available at 'www.fitchratings.com'.

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

Applicable Criteria and Related Research: The Top Ten Differences Between MLP
and Corporate Issuers
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