S&P cuts Martin Midstream notes

Standard & Poor's said it lowered its rating on Martin Midstream Partners LP's senior unsecured notes to B- from B.

The partnership recently upsized its senior secured revolving credit facility to $600 million from $400 million.

The recovery rating was revised to 6, indicating the expectation for negligible (0% to 10%) recovery for noteholders in the event of a payment default, from 5, because of S&P's view that the upsizing of the higher-priority debt will result in lower recovery prospects for the unsecured claimants.

In accordance with its notching criteria for a recovery rating of 6, S&P said it lowered its issue-level rating on the senior unsecured notes to B- (two notches below the corporate credit rating) from B.

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