S&P boosts Targa Resources

S&P said it raised its ratings for Targa Resources Corp. and its unsecured notes to BB+ from BB. The agency also upgraded Targa’s structurally subordinated debt to BB- from B+. The 3 recovery rating on the unsecured debt and 6 recovery rating on the subordinated debt are unchanged.

“The steps Targa took to reduce debt, including lower growth capital spending and dropping its common dividend 90%, resulted in leverage well below our 4.5x upgrade trigger. Additionally, Targa demonstrated resilience in volumes in 2020 despite a difficult commodity price environment. As a result, Targa used strong free cash flow to reduce its debt balance,” the agency said in a press release.

S&P noted Targa recently boosted its 2021 adjusted EBITDA guidance by about $100 million to the $1.9 billion - $2 billion range.

The outlook is stable.

© 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.