S&P rates Crestwood preferreds B

Standard & Poor's said it assigned its B issue-level rating to Crestwood Midstream Partners LP's class A preferred units.

The rating reflects three notches of subordination to Crestwood's BB corporate credit rating.

The outlook is stable.

Crestwood is expected to use the proceeds to fund a portion of its capital spending program and reduce borrowings under its revolving credit facility. The preferred shares issuance does not affect the BB corporate credit rating on the company.

S&P said it characterizes the preferred shares as having intermediate equity content under its hybrid security criteria. The agency expects adjusted debt leverage of about 4.5x in 2014 improving to about 4x in 2014.

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