Fitch cuts Midcontinent Express, debt to BBB-

Fitch Ratings said it downgraded the long-term issuer default rating and senior unsecured debt rating of Midcontinent Express Pipeline, LLC to BBB- from BBB.

The outlook is stable.

Fitch said the downgrade reflects the increased recontracting risk with Midcontinent Express’ long-term capacity reservation contracts, which are expected to roll off in significant amounts in 2019, along with uncertainty around the refinancing of the company’s September 2019 maturity and expectations for a slight increase in leverage.

The ratings, however, also reflect expected positive gas supply/demand fundamentals in the region that Midcontinent Express serves, Midcontinent Express’ supportive owner companies and stable expected near-term credit metrics and stable cash flows, the agency added.

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