2010-03-09 15:34:16 -

Fitch Ratings has assigned a 'BBB' rating to DCP Midstream, LLC's (DCPM) offering of $600 million of senior unsecured notes due 2020. Net proceeds from the offering are expected to be used to repay a portion of DCPM's existing $800 million of senior notes due in August 2010. The proposed notes will rank pari passu with DCPM's existing senior unsecured notes. DCPM's Issuer Default Rating (IDR) is 'BBB'. The Rating Outlook is Stable.

The Stable Outlook and 'BBB' rating reflect the scale and diversity of DCPM's asset base, including a footprint across several key North American gas producing regions, including high growth shale plays. The credit is further supported by the company's defensive financing strategy which has emphasized liquidity and regular

market access despite difficult conditions. Additionally, DCPM's capital expenditure and dividend policies are highly discretionary and allow management to conserve cash during difficult operating environments.

As a gas processor, however, DCPM's cash flows are highly sensitive to crude oil, natural gas liquids (NGLs) and natural gas prices.

Additionally, DCPM does not hedge its commodity price exposure and the decline in commodity prices in late 2008 and into 2009 resulted in a sharp drop in EBITDA for the company and a significant weakening of credit metrics. While results in the second half of 2009 reflected a rebound in NGL commodity prices, DCPM ended 2009 with debt to EBITDA of 3.7 times (x) and EBITDA interest coverage of 3.7x.

DCPM is one of the leading gatherers of natural gas and is one of the largest producers of NGLs in North America. DCP is a 50:50 joint venture ConocoPhillips (IDR 'A'; Outlook Stable by Fitch) and Spectra Energy Capital, LLC (IDR 'BBB'; Outlook Stable by Fitch). DCPM owns the general partner of DCP Midstream Partners, L.P. (NYSE:DPM), a midstream master limited partnership (MLP).

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Fitch Ratings, New YorkBryan Caviness, +1-212-908-9172Ralph
Pellecchia, +1-212-908-0586Media Relations:Cindy Stoller,
+1-212-908-0526 cindy.stoller@fitchratings.com : mailto:cindy.stoller@fitchratings.com