Fitch Rates Enterprise Products' Senior Notes 'BBB-'

Business Wire, August 27, 2007

NEW YORK -- Fitch Ratings has assigned the rating of 'BBB-' to the proposed offering of Senior Notes due 2017 by Enterprise Products Operating LLC (EPO). Proceeds from the offering will be used to repay the October 2007 maturity of $500 million of Senior Notes E as well as to term out borrowings under the company's revolving credit facility. EPO is the successor, through a reorganization, to Enterprise Products Operating L.P. (EPOLP) and is a wholly owned subsidiary of Enterprise Products Partners L.P., a leading publicly traded energy master limited partnership (MLP).

Fitch rates the debt of EPO as follows:

-- Issuer Default Rating (IDR) 'BBB-';

-- Senior unsecured debt 'BBB-';

-- Junior subordinate notes (hybrids) 'BB '.

The Rating Outlook is Stable.

The ratings of EPO continue to be supported by the size, diversity and integration of the company's energy operations as well as the stable and predictable nature of operating cash flows from primarily fee-based contracts. The ratings also recognize the ongoing balanced financing of the company's aggressive growth strategy, management's proven track record of supporting the company's credit ratings and the natural hedges built into the company's operations to offset volatility in commodity prices.

Offsetting concerns include the structural and functional ties with Enterprise GP Holdings L.P. (EPE) and EPCO Holdings, Inc. (EPCO), which have weaker credit profiles than EPO. As such, EPO's cash distributions may be called upon (at least indirectly) to meet the future financial obligations of these affiliates. Additional concerns include increasing levels of operating cash flows at EPO coming from hurricane-prone regions, the construction risks for major organic projects, the integration risks of new assets being added into the company's portfolio and the company's ongoing reliance as an MLP to access the capital markets to finance its growth strategy.

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