Moody's rates Targa notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Targa Resources Partners LP's proposed $400 million senior unsecured notes due 2022.

The partnership's Ba2 corporate family rating, Ba2 probability of default rating and the rating on its other existing senior notes were not affected.

The proceeds will be used to reduce the borrowings under Targa's $1.1 billion senior secured revolving credit facility.

After applying the proceeds, Targa is expected to have about $1 billion of revolver availability.

The outlook remains stable.

The ratings reflect the improving leverage profile and the increased emphasis on investments designed to boost the proportion of the partnership's cash flow derived from fee-based businesses, Moody's said.

The ratings are supported by a belief that Targa is focused on building a more durable and less volatile business profile while keeping the ratio of debt-to-EBITDA below 4x level, the agency said.

The ratings remain constrained by the commodity price and volume risk embedded in Targa's legacy gas gathering and processing business, Moody's said.

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