S&P eyes Targa for upgrade

S&P said it placed Targa Resources Corp. on CreditWatch with positive implications after it agreed to sell its 25% equity interest in Gulf Coast Express Pipeline for $857 million.

“We expect Targa's receipt of the proceeds from the sale, in addition to our forecast for strong free cash flow in 2022, to reduce its leverage metrics well below our previous expectations,” S&P said in a press release.

The placement reflects a likely upgrade in Targa later this month if its 2021 earnings and 2022 budget and leverage are in line with expectations, including sustained leverage less than 4x, the agency said.

© 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.