Fitch lifts NGL Energy view to stable

Fitch Ratings said it affirmed NGL Energy Partners LP's long-term issuer default rating at B and the senior unsecured rating at B with recovery rating of RR4.

The recovery rating of RR4 indicates 31% to 50% expected default recovery.

Fitch also said it affirmed NGL Energy Finance Corp.'s senior unsecured debt rating at B with recovery rating of RR4.

NGL Energy Finance is the co-issuer for NGL's senior unsecured notes.

The outlook also was revised to stable from negative, given the partnership's plan to de-lever the balance sheet with proceeds from the sale of its retail propane business, Fitch said.

In July 2018, the company closed on the sale of its remaining retail propane business for about $900 million and the partnership is currently redeeming the $367 million outstanding notes due 2021, the agency explained.

NGL's cash flows will continue to benefit from volumes on the Grand Mesa pipeline that went into service in late 2016, Fitch said.

With current crude prices, the agency said it is less concerned with counterparty exposure on the pipeline.

But if crude prices face weakness, this concern would resurface, Fitch said.

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