S&P: DCP Midstream notes BBB

Standard & Poor's said it assigned a BBB rating to DCP Midstream LLC's proposed $500 million of senior notes due 2021.

The proceeds will be used to repay short-term debt and for general corporate purposes, including growth capital expenditures, S&P said.

The corporate credit rating and stable outlook remain unchanged.

The ratings reflect the company's strong competitive position within a diverse set of production basins, financial flexibility when commodity prices are low and some resilience to weakening commodity prices as evidenced by a low break-even commodity price deck, S&P said.

The company has somewhat better financial flexibility than most of its peers when prices are low, which supports credit by preserving liquidity, the agency said.

Its exposure to changing commodity prices and potential significant cash flow volatility partly offset these strengths, S&P said.

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