Moody’s lifts some DCP debt from junk

Moody's Investors Service upgraded the senior unsecured ratings on the debt of DCP Midstream Operating, LP to Baa3 from Ba1 and upgraded the rating on the junior subordinated debt to Ba1 from Ba2 of DCP Midstream, LLC.

The rating on the preferred equity issued by DCP Midstream, LP was upgraded to Ba2 from Ba3.

Moody's withdrew DCP Midstream, LP's Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-2 speculative grade liquidity rating.

The outlook is positive.

“The upgrade to Baa3 reflects DCP Midstream's improving credit metrics, growth in earnings power as well as significant debt reduction,” James Wilkins, a Moody’s vice president, said in a news release.

“The positive outlook reflects our expectation that DCP will continue to improve its credit profile through further debt reduction with the support of its soon to be majority owner, Phillips 66.”

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