Moody's raises Targa notes

Moody's Investors Service said it upgraded Targa Resources Partners LP's (TRP) senior unsecured notes rating to Ba2 from Ba3, and assigned a positive outlook to TRP.

Concurrently, Moody’s affirmed Targa Resources Corp.'s (Targa) Ba2 corporate family rating, Ba2-PD probability default rating and B1 secured bank facility rating. The agency changed the outlook to positive from stable, and the speculative grade liquidity rating was changed to SGL-2 from SGL-3. Targa wholly owns TRP.

“The upgrade of TRP's unsecured senior notes ratings reflects our expectation of meaningfully reduced levels of revolver usage compared to higher usage in the past when Targa was completing its growth projects,” Moody’s said.

The agency said the positive outlook reflects the company's expected strong earnings performance, meaningful free cash flow generation in 2021-22 and further reduction in leverage.

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