Fitch has affirmed the following ratings:

Boardwalk Pipelines, LP:

--IDR at 'BBB';

--Senior unsecured debt at 'BBB'.

Texas Gas Transmission, LLC:

--IDR at 'BBB+';

--Senior unsecured debt at 'BBB+'.

Boardwalk's ratings and Stable Outlook primarily reflect a combination of the stable and relatively predictable cash flows generated at Boardwalk's pipeline subsidiaries and the strong support of its majority owner, Loews Corporation (Loews; IDR: 'A', Stable Outlook). Loews' commitment to Boardwalk has been important in ensuring the continued funding of Boardwalk's major capital projects, which are almost complete.

The total capital cost of Boardwalk's major pipeline expansion projects (East Texas Expansion, Southeast Expansion, Gulf Crossing Project, and Fayetteville & Greenville Laterals), including the additional compression assets, is estimated at $4.8 billion, of which more than $4 billion had been spent as of March 31, 2009. Boardwalk is also nearing completion of its $88 million Western Kentucky storage expansion project and embarking on an estimated $200 million Haynesville pipeline expansion project, which is expected to be completed by the end of 2010. Loews has provided funding in excess of $1.5 billion so far, including a $700 million class B unit equity infusion and $500 million common unit equity infusion in 2008 and a $200 million subordinated loan and $150 million common unit equity infusion in 2009. In addition, Loews has committed to providing a further $150 million of capital if Boardwalk is unable to access its remaining funding needs, estimated at $375 million, at acceptable terms.

Of concern is the ongoing replacement of several sections of pipe in the new projects that were determined to have anomalies following hydrostatic tests. This problem of slight expansions of the pipe occurred in less than 1% of Boardwalk's new pipe segments, but was spread throughout the new projects. This required reducing the operating pressure and also shutting down sections for temporary intervals to replace the affected segments. As a result, revenues and cash flows are considerably lower than anticipated. Boardwalk has been working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) and expects to obtain permission to increase pressure to the normal operating level of 72% in each project following the replacement of these sections.