Moody's upgrades Rattler notes to Ba2

Moody's Investors Service said it upgraded Rattler Midstream LP's senior unsecured notes to Ba2 from Ba3, while concurrently confirming the partnership's Ba2 corporate family rating and Ba2-PD probability of default rating. Moody's also withdrew Rattler's SGL-3 speculative grade liquidity given it is now a fully owned subsidiary of Diamondback Energy, Inc., rated Baa3.

This action concludes the ratings review on Ratter that was started on May 16, the agency said.

Diamondback repaid and terminated Rattler's revolver at closing, but the subsidiary’s $500 million of 2025 senior unsecured notes remain outstanding.

“The upgrade of the notes to Ba2 reflects the stand-alone credit risk profile of Rattler, the full repayment of the Rattler revolver which previously had a priority claim on Rattler's assets over the notes, as well as Rattler's strategic and operational importance to Diamondback. The Rattler notes offer no recourse to Diamondback and represent the only remaining debt of Rattler,” Moody’s said in a press release.

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