S&P downgrades EagleClaw

S&P said it downgraded its long-term corporate credit rating on EagleClaw Midstream Ventures, LLC to B from B+.

The outlook is negative.

At the same time, the agency lowered its issue-level rating to B from B+ on the $1.25 billion senior secured term loan due 2024 and revised its recovery rating to 4 from 3, indicating an expectation for average (30%-50%; rounded estimate 30%) recovery in a default scenario.

“The downgrade follows the company's revised volume growth expectations, with slower volume growth than previously forecast,” S&P said in a news release.

“Actual 2017 results were weaker than previously forecast due to lower activity ramp-up from some producers decreasing drilling and completion activity in second-half 2017, completion delays from a shift to multi-well pad development and a shortage of completion crews.”

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