Moody’s rates Targa notes Ba3

Moody’s Investors Service said it assigned a Ba3 rating to Targa Resources Partners LP’s proposed $750 million notes due 2030.

The partnership is wholly owned by Targa Resources Corp.

Proceeds are expected to be primarily used to reduce borrowings under the partnership’s revolver.

S&P said it views the transaction as debt neutral.

“The Ba3 rating on TRP’s unsecured notes reflects the substantial amount of priority-claim secured debt in the capital structure as well as the likelihood of increased revolver use. Accordingly, we believe the Ba3 rating is more appropriate than that suggested by the Moody’s loss given default (LGD) methodology,” said Moody’s in a press release.

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