Moody’s rates DCP Midstream’s notes Ba2

Moody’s Investors Service said it assigned a Ba2 rating to DCP Midstream Operating LP’s proposed $400 million senior notes offering.

Parent DCP Midstream LP, which will guarantee the notes, will use the proceeds for general partnership purposes, including repaying borrowings under its revolving credit facility and capital expenditures.

“DCP's proposed issuance will reduce borrowings outstanding under its revolving credit facility, which was used to repay $600 million of notes that matured in March 2020," said James Wilkins, a Moody's vice president, in a press release. "The notes issuance will not increase debt, but will improve liquidity."

DCP Midstream, LP's ratings, including the Ba2 corporate family rating, Ba2-PD probability of default rating, B1 ratings on preferred units and SGL-3 speculative grade liquidity rating are unchanged. Additionally, DCP Midstream Operating's Ba2 ratings on the senior unsecured notes and the B1 rating on the junior subordinated notes also are unchanged, the agency said.

The outlook is stable.

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