S&P upgrades SPX Flow

S&P said it raised all of the ratings on SPX Flow Inc., including the issuer credit rating, to BB from BB-.

The recovery rating on the company's senior unsecured debt remains at 4.

SPX Flow continues to show solid operating results that have resulted in a reduction in debt, the agency said.

The company also announced that it is pursuing a divesture of its power and energy business, with plans to use a portion of the proceeds to repay additional debt, S&P said.

As a result, the agency said it now forecasts that the company will operate with adjusted debt-to-EBITDA of about 2x to 3x over the next 12- to 18-months.

The stable outlook reflects a view that the company will be able to sustain leverage of less than 3x over the next 12 months, even with some potential earnings volatility because of exposure to cyclical industrial end-markets, S&P said.

S&P lifts Southern Star notes from junk

S&P said it raised the ratings on Southern Star Central Corp.'s $450 million 5.125% senior unsecured notes due 2022 to BBB- from BB+.

The agency also said it affirmed the BBB- issuer credit rating on Southern Star and the BBB- issue ratings on the senior unsecured debt at subsidiary, Southern Star Central Gas Pipeline Inc.

Southern Star paid down a significant portion of priority debt at the pipeline operating company that is now expected to make up less than 50% of the capital structure going forward, S&P said.

The stable outlook reflects an expectation that funds from operations-to-debt will remain at bout 12% to 13%, the agency said, while its debt-to-EBITDA ratio remains in the 5.5x to 6x range over the next two years as capital expenditures remain elevated.

The company continues funding new capital expenditure with debt, although EBITDA generated from its new modernization program and an upcoming rate case will help offset pressure to its credit metrics, S&P said.

S&P downgrades American Energy

S&P said it lowered the issuer credit rating to American Energy – Permian Basin LLC to CC from CCC.

The agency also said it lowered the rating on the company's first-lien secured notes due 2020 to CCC from B-, along with the rating on its second-lien secured debt, unsecured debt and junior subordinated notes to C from CC.

American Energy – Permian Basin, formerly known as Sable Permian Resources Land LLC, has announced private exchange offers for any and all of its outstanding first-lien notes due 2020, second-lien notes due 2020 and senior notes due 2019, 2020 and 2021, S&P said.

The negative outlook reflects the likelihood the agency could lower the issuer credit rating to SD (selective default) and debt ratings to D following the successful close of the tender, the agency said.

It also reflects the potential to lower the issuer credit rating to D if the tender is unsuccessful and the company elects to file for bankruptcy protection, S&P said.

Moody's downgrades Talen Energy

Moody's Investors Service said it downgraded the senior secured debt of Talen Energy Supply, LLC to Ba3 from Ba2.

The downgrade follows the refinancing of a portion of the company's senior unsecured and senior unsecured guaranteed debt with the proceeds of a $500 million senior secured bond.

Moody's also said it affirmed Talen's corporate family rating at B2, probability of default rating at B2-PD, senior unsecured guaranteed debt at B3, senior unsecured unguaranteed debt at Caa1 and speculative grade liquidity rating at SGL-2.

The agency also said it assigned a Ba3 rating to Talen's new $500 million issue of secured bonds due 2027.

The outlook is stable.

The downgrades are driven by an increase in the amount of first priority debt in the capital structure in relation to the remaining unsecured and unsecured guaranteed debt, Moody's said.

Talen's corporate family rating and stable outlook reflect the consolidated credit profile of the organization, which is not materially altered by the refinancing, the agency said.

The ratings also are driven by the inherent volatility of the merchant power markets in which the company operates and its relatively leveraged capital structure, Moody's said.

The ratings also consider Talen's elevated exposure to carbon transition risks and heavy reliance on fossil-fired generation, the agency said.

S&P rates DCP Midstream notes BB+

S&P said it assigned a BB+ rating and 3 recovery rating to DCP Midstream Operating LP's $500 million senior unsecured notes due 2029.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds will be used for general partnership purposes, including repaying the outstanding borrowings under its revolving credit facility and fund its capital expenditure, S&P said.

DCP Midstream Operating is a wholly owned subsidiary of DCP Midstream LP, which guarantees the proposed notes, the agency said.

The partnership is one of the largest producers and marketers of natural gas liquids and one of the largest natural gas processing companies in the United States, S&P said.

Fitch rates DCP Midstream notes BB+

Fitch Ratings said it assigned a BB+ rating and recovery rating of RR4 to DCP Midstream Operating, LP's proposed senior unsecured notes due 2029.

The outlook is stable.

The notes are being issued by DCP Midstream Operating and are fully and unconditionally guaranteed by parent company DCP Midstream, LP.

The guarantee by DCP will rank equally in right of payment to all of DCP's existing and future unsecured senior indebtedness, Fitch said.

The proceeds will be used to repay debt under DCP Midstream Operating's revolving credit facility and for general partnership purposes, the agency said.

The ratings reflect the size, scale, scope and diversity of its asset base, Fitch said.

The ratings also recognize that the company is one of the largest producers and marketers of natural gas liquids (NGLs) and processors of natural gas in the United States, the agency said.

The ratings also take into account that its operations are exposed to volumetric risks associated with the domestic production and demand for natural gas and NGLs, Fitch said.

S&P rates Triton Container loan BBB-

S&P said it assigned a BBB- rating and 1 recovery rating to Triton Container International Ltd.'s and subsidiary TAL International's $1.125 billion revolving credit facility due in 2024.

The 1 recovery rating indicates 90% to 100% expected default recovery.

TAL International is subject to a $300 million sub-limit under the facility, S&P said.

The positive outlook reflects an expectation that the demand for global containerized trade and the company's utilization and lease rates will remain strong barring any impacts from potential expansion of trade tariffs, S&P said.

The agency said it expects the company to maintain relatively stable credit metrics, including EBIT interest coverage of around 2x.

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