S&P revises Downstream to stable

Standard & Poor's said it revised the outlook on Downstream Development Authority to stable from negative.

The agency also said it affirmed the B issuer credit rating and B issue-level rating on Downstream's 10½% senior secured notes due 2019.

The outlook revision to stable reflects an expectation for operating metrics to stabilize and improve modestly over the intermediate term, said Carissa Schreck, an S&P analyst.

Specifically, EBITDA coverage of fixed charges is expected to be in the low 1x range and for debt-to-EBITDA to be in the low 5x range through 2015, Schreck said in a press release.

Under the new terms, the agency said it believes Downstream can sustain an adequate liquidity cushion in the form of cash balances, revolver availability and anticipated free cash flow relative to fixed charges over the intermediate term.

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