S&P rates Targa notes BB

Standard & Poor's said it assigned its BB issue-level rating and 4 recovery rating to Targa Resources Partners LP's and Targa Resources Partners Finance Corp.'s proposed $400 million senior unsecured notes due 2023.

The 4 recovery rating indicates an expectation of average recovery if a payment default occurs.

The agency said the rating on Targa Resources Partners reflects a fair business risk profile and significant financial risk profile.

"Key factors for the business risk include cash flows that are largely vulnerable to volatile commodity prices and volume risk, limited asset diversity and the master limited partnership structure, under which the partnership distributes virtually all cash flow," said S&P credit analyst Michael Grande in a news release.

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