UPDATE: Credit Suisse Downgrades Regency Energy Partners to Neutral on Distribution Visibility

Credit Suisse downgraded Regency Energy Partners

from Outperform to Neutral and lowered the price target from $25.00 to $24.00. Credit Suisse noted, "We are downgrading RGP to Neutral from Outperform, as we believe that distribution growth may not resume until 2014 given RGP's less than 1.0x coverage in 2012 and somewhat levered balance sheet as RGP continues its $1.2B build-out. With 2013 distribution growth unclear, we are raising our target yield range by 25 bps, to 7.5%-8.0%, and lowering our target price by $1, to $24. Adding the current $1.84/unit of distributions equates to NTM total return potential of 5%-11%." Regency Energy Partners closed at $23.75 on Thursday.