Moody's upgrades DCP Midstream

Moody's Investors Service said it upgraded DCP Midstream, LP's corporate family rating to Ba1 from Ba2, probability of default rating to Ba1-PD from Ba2-PD and perpetual preferred units ratings to Ba3 from B1.

Moody's also boosted the rating on the debt obligations of DCP Midstream Operating LP, including the senior unsecured notes to Ba1 from Ba2. The agency changed the speculative grade liquidity rating to SGL-2 from SGL-3.

Concurrently, Moody’s raised DCP Midstream, LLC’s junior subordinated notes to Ba2 from B1 and senior unsecured notes to Ba1 from Ba2.

"The upgrade reflects continued improvement in DCP's credit metrics and our expectation the company will further reduce debt with positive free cash flow," stated James Wilkins, a Moody's vice president, in a press release. "DCP has generated positive free cash flow despite the downturn in U.S. oil & gas production in 2020, after cutting spending and its distribution."

The outlooks for the three companies are stable.

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