Fitch assigns Oneok BBB

Fitch Ratings said it assigned BBB ratings to Oneok, Inc. (OKE) and Oneok Partners, LP, and their senior unsecured debt. Debt at OKE and Oneok Partners is cross guaranteed. The outlook is stable.

“OKE’s ratings reflect its significant size and scale, diverse basin exposure and liquidity position. While OKE, much like others in the midstream space has been impacted from the prolonged stay at home orders from the ongoing pandemic, the third-quarter results point to a strong rebound. Near-term elevated leverage is a concern, however, EBITDA growth from recent expansions, likely sustained turnaround in volumes, and FCF flexibility afforded from capex cuts allows OKE to bring leverage down in 2021 underpinning our stable outlook,” Fitch said in a press release.

Fitch said it forecasts 2021 total debt with equity credit to operating EBITDA to improve to between 4.4x-4.8x in 2021 from about 5.2x-5.4x in 2020.

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