Fitch cuts BCP Raptor, loan to B+

Fitch Ratings said it downgraded BCP Raptor LLC's (EagleClaw Midstream Ventures LLC) long-term issuer default rating to B+ from BB-.

The agency also downgraded BCP Raptor's senior secured term loan to B+/RR4 from BB/RR2.

The outlook was revised to negative from stable.

“The downgrades reflect underperformance in volume growth relative to Fitch's May 2017 expectations, this growth underperformance will lead to higher than anticipated leverage in 2018 and 2019 and a slower than previously anticipated financial metric and cash flow profile improvements,” the agency said in a news release.

“Fitch had previously listed a slowdown or decrease in volume growth expectations, as well as, 2018 leverage expected above 6.0x as negative ratings triggers. With the decrease in expected volumes near-term, Fitch expects both negative triggers to be met.”

“The change in term loan rating reflects expectations for average recoveries at the high end of the 31% to 50% range on the term loan in the event of a default given the lower than expected volume performance would weigh on enterprise value in the event of a restructuring.”

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