S&P affirms Plains All American

S&P said it affirmed its BBB- corporate credit and senior unsecured issue-level ratings on Plains All American Pipeline LP and removed the ratings from CreditWatch, where S&P placed them with negative implications on Aug. 14.

The outlook is negative.

S&P said the rating action is based on its view that the partnership's plans to reduce its distribution by 45% and take other steps to repay debt should provide a path to improve adjusted debt to EBITDA below 5x during the next four quarters.

“The rating action also reflects our ongoing review of Plains' business risk profile and that there is some execution risk to achieving this goal, in terms of the timing and amount of non-core asset sales, a possible preferred equity raise, and the financing of new growth capital and future working capital needs,” S&P said in a news release.

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