Moody’s revises Rockies Express to positive

Moody's Investors Service said it changed Rockies Express Pipeline LLC's (REX) outlook to positive from stable and affirmed all of its ratings, including the Ba2 corporate family rating and Ba2 senior unsecured notes ratings.

In addition, the agency affirmed all of Tallgrass Operations LLC's ratings, including the Ba3 corporate family rating and Ba3 senior secured credit facility ratings, with the outlook remaining stable.

Moody's also assigned a speculative grade liquidity rating of SGL-3 to Rockies Express and to Tallgrass.

"REX's positive outlook reflects expected improvement in financial leverage over 2015 and 2016 from a combination of increased earnings from new east to west transportation contracts and debt reduction," Moody's senior vice president Pete Speer said in a news release.

"Tallgrass' ratings were affirmed based on the benefits of visible near-term debt reduction offset by the continued sale of assets to Tallgrass Energy Partners."

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