Fitch rates Tallgrass notes BBB-

Fitch Ratings said it assigned a BBB- senior unsecured rating to Tallgrass Energy Partners, LP’s proposed offering of $400 million in senior notes due 2023.

The notes are being co-issued with Tallgrass Energy Finance Corp. and will rank equally in right of payment to Tallgrass Energy Partners’ and Tallgrass Energy Finance’s existing notes due 2024 and 2028.

Proceeds from the offering are expected to be used to repay a portion of the outstanding balance of Tallgrass’ revolving credit facility.

“TEP’s ratings reflect its size, scale, simplified ownership structure, and the expected earnings and cash flow stability from its predominantly take-or-pay-contracted pipeline assets,” Fitch said in a news release.

“TEP's ratings reflect significant near-term re-contracting risk at Rockies Express Pipeline, LLC (REX) and Pony Express Pipeline (Pony) specifically, in 2019 and 2020.”

© 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.