S&P turns Targa outlook to positive

S&P said it changed its outlook on Targa Resources Corp. to positive from stable and affirmed its BBB- issuer and senior unsecured debt ratings.

“We believe the company's business risk has improved over the last few years largely due to their increasing scale and growth of cash flows contributed from the logistics and transportation segment, coupled with the increase in its fee-based cash flows. Targa has improved their contract profile by adding fee-floors to contracts and growing their fee-based business while making acquisitions,” the agency said in a press release.

S&P said it forecasts Targa to keep its S&P Global Ratings'-adjusted leverage in the mid-3x area in 2023 and to deliver adjusted EBITDA of about $3.5 billion-$4 billion over the next two years.

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