Moody’s lowers EnLink

Moody’s Investors Service said it downgraded EnLink Midstream, LLC's corporate family rating to Ba2 from Ba1, probability of default rating to Ba2-PD from Ba1-PD and senior unsecured notes rating to Ba2 from Ba1.

The speculative grade liquidity rating remains SGL-2.

The outlook remains stable.

Moody's also downgraded subsidiary EnLink Midstream Partners, LP's senior unsecured note rating to Ba2 from Ba1 and perpetual preferred units rating to B1 from Ba3.

Concurrently, Moody's downgraded GIP III Stetson I, LP's corporate family rating to B3 from B1, PDR to B3-PD from B1-PD and the senior secured term loan rating to B3 from B1.

The term loan borrowers are GIP III Stetson I and GIP III Stetson II, LP.

“EnLink's downgrade reflects its rising volumetric risk, with likely increasing leverage and declining operating cash flow in 2021 due to coronavirus' negative effect on E&P capital spending and the global economic outlook, and uncertainty regarding future volumes in its key basins,” Amol Joshi, Moody's vice president and senior credit officer, said in a news release.

“The downgrade of GIP III Stetson, which owns controlling interests in EnLink, reflects its weak cash flow and high stand-alone leverage.”

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