Moody’s applies B1 to Crestwood notes

Moody's Investors Service said it assigned a B1 rating to Crestwood Midstream Partners LP's proposed $700 million senior unsecured notes due 2023.

Proceeds will be used to fund the redemption of the 7¾% notes due 2019 and repay outstanding borrowings under the company's revolving credit facility.

All other ratings for Crestwood remain unchanged and the outlook is stable.

"This senior notes offering will refinance Crestwood's existing notes and revolver borrowings, extending Crestwood's maturity profile on a longer-term basis, enhancing the company's liquidity," Moody's vice president Arvinder Saluja said in a news release.

The B1 rating on the proposed notes is a notch below the company’s Ba3 corporate family rating. Crestwood has a $1 billion senior secured revolving credit facility. The size of the potential priority claim from the revolver to the assets at Crestwood relative to the senior unsecured debt outstanding results in the unsecured debt being rated one notch beneath the Ba3 corporate family rating under Moody's Loss Given Default Methodology, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.