Fitch revises EnLink view to stable

Fitch Ratings said it revised the outlooks for EnLink Midstream, LLC (ENLC) and EnLink Midstream Partners, LP to stable from negative.

“The stable outlook and ratings reflect Fitch's expectation that ENLC will maintain leverage (total debt with equity credit/op. EBITDA) below 5.5x in 2021 and 2022. ENLC is projected to post lower EBITDA in 2021 versus 2020 driven by declining volume and cashflow in Oklahoma and in the Barnett, resulting in leverage elevating from YE20's 5.1x to 5.2x-5.4x. Fitch continues to expect the Permian and Louisiana segments to be the growing segments that help partially offset declines in Oklahoma and North Texas in the near term,” the agency said in a press release.

Fitch said it sees ENLC reducing its leverage based on debt repayment aided by a modest capital expenditures program in 2022. “Another factor underlying the outlook changing to stable from negative is that ENLC now possesses ample liquidity to proactively manage its $350 million term loan maturing in December 2021,” Fitch said.

The agency concurrently affirmed the BB+ issuer rating, the BB+/RR4 senior unsecured rating and the BB-/RR6 preferred stock rating.

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