S&P cuts Traverse Midstream

S&P said it lowered the issuer rating on Traverse Midstream Partners LLC to B from B+.

At the same time, S&P lowered the issue-level rating on Traverse's $1.43 billion term loan B to B from B+. The 4 recovery rating is unchanged, indicating an expectation for average recovery (30%-50%; rounded estimate: 45%) in the event of a payment default.

The outlook is stable.

“Our B issuer credit rating on Traverse Midstream reflects higher than previously expected leverage above 8.5x for the next 12 months and heightened counterparty risk due to deteriorated credit quality of Rover's and Ohio River's major shippers,” S&P said in a news release.

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