S&P might lift Rockies Express

S&P said it placed its BB+ corporate credit and senior unsecured debt ratings on Rockies Express Pipeline LLC on CreditWatch with positive implications.

The 3 recovery rating is unchanged and reflects an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

The agency said the positive CreditWatch listing follows management's announcement on its fourth-quarter earnings call that it has received the board's approval to repay the upcoming $550 million senior notes due 2018 using a capital contribution from each of its sponsors based on their percentage ownership.

“Once completed, the debt repayment will materially improve credit measures in 2018 and beyond, which will result in adjusted debt leverage in the 3x-3.5x range for the next 24 months,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.