Fitch rates EnLink Midstream BBB-

Fitch Ratings said it assigned a first-time long-term issuer default rating of BBB- to EnLink Midstream, LLC following the completion of the simplification transaction involving EnLink and EnLink Midstream Partners, LP.

Fitch also said it affirmed EnLink Midstream Partners, LP's existing issuer default rating and senior unsecured rating at BBB- and preferred equity rating at BB.

The outlook is stable for both entities.

As part of the transaction, EnLink also launched a $1.75 billion senior unsecured revolving credit facility and terminated its existing credit facility and EnLink's existing credit facility.

Fitch said it views the structural simplification transaction to be modestly credit positive for the EnLink family.

The structural simplification will also enhance its credit metrics, specifically distribution coverage, which should remain robust and higher than 1.1x through 2020, the agency said.

The ratings are underpinned by expectations for generally stable revenue, earnings and cash flow given the production profile and contract structures supporting the company's operations, Fitch said.

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