Moody's: Buckeye view stable

Moody's Investors Service said it affirmed Buckeye Partners, LP's Baa3 long-term senior debt ratings and changed the outlook to stable from negative.

The agency said the stable outlook reflects its expectation that Buckeye's key credit metrics will improve through 2013 and 2014 as a result of higher earnings in its pipeline and terminals segment and cash flows from expansion projects coming on stream as well as management's commitment to issuing equity in order to protect its financial leverage profile. Moody's expects financial leverage to decline to about 4.6 times by the end of 2014 from 5.5 times at the end of 2012.

Buckeye's Baa3 rating remains underpinned by the stable revenues from its legacy refined product pipeline system and terminalling assets, the agency said.

Nevertheless, with an outlook for overall flat domestic refined product volumes and given the need for growth per Buckeye's master limited partnership business model, acquisitions have and are likely to continue to be a part of the company's long-term growth strategy, which poses execution, financing and event risk, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.