Moody's rates Access Midstream notes Ba2

Moody's Investors Service said it assigned a Ba2 (LGD4, 64%) rating to Access Midstream Partners, LP's proposed offering of $600 million senior notes due 2024. The outlook remains positive.

The proceeds will be used to repay revolver borrowings and fund growth capital expenditures.

The agency said Access Midstream's Ba1 corporate family rating is supported by the stability of its substantially all fee-based revenues, contractually limited volume risk, growing scale and broad geographic and basin diversification.

In Moody's view, these positive attributes are tempered by the partnership's significant customer concentration with Chesapeake Energy (Ba2/stable).

The positive outlook is based on Moody's expectation that Access Midstream's exposure to Chesapeake will be reduced over the next 18 months while its cash flows continue to increase and credit metrics strengthen.

© 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.