Fitch affirms, pulls DCP Midstream from watch

Fitch Ratings said it affirmed DCP Midstream, LP and DCP Midstream Operating, LP long-term (lt) issuer default rating at BB+. The senior unsecured ratings and junior subordinated notes for DCP Operating have been affirmed at BB+/RR4 and BB-/RR6, respectively. Additionally, Fitch affirmed DCP’s preferred equity ratings at BB-/RR6. Fitch also removed the rating watch negative and assigned a stable outlook.

“The removal of the RWN and assignment of stable outlook reflects Fitch’s expectation that DCP’s leverage will remain elevated but lower than our previous forecast in March 2020. Fitch now sees improved YE 2020 leverage in a range of 4.8x-5x, which ticks up to a 5x-5.2x range at YE 2021, absent any asset sales or further distribution cuts, remaining below the 5.5x negative rating sensitivity,” Fitch said in a press release.

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