Kinder Morgan to Review Dividend to Keep Investment Grade Rating

(Bloomberg) -- Kinder Morgan Inc. will review its dividend policy in an effort to maintain its investment-grade rating as the worst oil-market collapse in a generation threatened cash flow.

The company’s board "will be reviewing the dividend policy and financing plans in the coming days." As recently as Nov. 18, the company was promising investors a 6 percent to 10 percent increase from the $2 per share it budgeted for this year.

Analysts have been split on whether Kinder Morgan’s dividends are sustainable as the pipeline industry’s ability to tap equity and debt markets to finance growth dimmed. The company’s stock tumbled 26 percent this week, sliding as much as 10 percent today to an all-time low of $17.33. Moody’s Investors Service warned on Tuesday that Kinder Morgan’s bonds were on the verge of junk status.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net

Copyright 2016 Bloomberg News.

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