S&P lifts Boardwalk debt

S&P said it affirmed the BBB- corporate credit rating on Boardwalk Pipeline Partners LP and its operating subsidiaries, Gulf South Pipeline Co. LP and Texas Gas Transmission LLC.

The agency also said it upgraded the ratings on Boardwalk's unsecured debt to BBB- from BB+, including the rating on its revolving credit facility.

The outlook remains stable.

The upgrades reflect a view that Boardwalk now has less priority debt at its operating companies, as Boardwalk has refinanced debt at its operating companies with debt at Boardwalk, S&P said.

The agency’s assessment of Boardwalk's BB+ stand-alone credit profile reflects its satisfactory business risk profile and aggressive financial risk profile.

The ratings also consider the company’s large percentage of fixed-fee revenues, primarily investment-grade customer base and improving contract length as new projects with long-term contracts come online, S&P said.

But changing market dynamics due to an oversupply of shale gas and weaker basis differentials could pressure rates for contract renewals, the agency 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.