Fitch upgrades Medallion Midland

Fitch Ratings said it upgraded Medallion Midland Acquisition, LLC's long-term issuer default rating to B+ from B and senior secured term loan B rating to BB-/RR3 from B+/RR3. Fitch also raised Medallion Gathering & Processing, LLC's IDR to B+ from B. Fitch also changed the outlooks to stable from negative.

The upgrade partly indicates the expected rise in 2021 volumes. It also demonstrates the flexibility of the companies’ system. Medallion’s second-quarter 2020 record EBITDA quarter demonstrates these features, deployed its network for storage services, the agency said.

“The negative outlook was set 12 months ago when Fitch foresaw industry volume declines. The ensuing two quarters of volumes were better than expected (though volumes did fall). Notwithstanding a good EBITDA performance through mid-year, Fitch expected to see a somewhat longer track record. By 4Q20, volumes showed stabilization, and a review of many of the company's 27 long-term customers resulted in Fitch forecasting 2021 volumes rising meaningfully over 2020,” the agency said in a press release.

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