S&P rates Traverse, loan B+

S&P said it assigned a B+ corporate credit rating to Traverse Midstream Partners LLC and a B+ issue-level rating to its $1.135 billion senior secured term loan due 2024.

The 3 recovery rating indicates a view that lenders can expect meaningful (50% to 70%; rounded estimate: 60%) recovery if a payment default occurs.

The outlook is stable.

“The B+ corporate credit rating reflects the differentiated credit quality between Traverse and that of Rover Pipeline LLC and Ohio River System LLC, the entities in which Traverse owns a 35% and 25% ownership, respectively,” S&P said in a news release.

“We view the underlying cash flows at Rover and Ohio River to be stable because they are highly contracted with either take-or-pay agreements or minimum volume commitments. Offsetting this is the low interest coverage at Traverse, which limits the rating to B+.”

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