S&P changes Midcontinent Express view

S&P said it revised its outlook on Midcontinent Express Pipeline LLC to negative from stable and affirmed the BBB- issuer credit rating.

Additionally, all issue ratings were affirmed.

The company's short-tenured contract profile, with over 85% of contracted capacity commitments set to roll off before August 2019, combined with expected pricing pressure across the pipeline's geographic footprint, has led to heightened recontracting risk over the next 12-18 months, the agency explained.

S&P said the revised outlook is based on the considerable recontracting risk, which could also have implications on the company's ability to refinance its $450 million senior notes due in September 2019.

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