Moody's rates Targa notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Targa Resources Partners LP's tack-on offering of $200 million senior unsecured notes due 2023.

The proceeds from the new senior notes will be used to finance a portion of the $950 million acquisition of the Williston Basin midstream assets of Saddle Butte Pipeline LLC.

Targa's other ratings are unchanged and the outlook remains stable.

"The Saddle Butte acquisition diversifies Targa's asset base and contributes a new fee-based revenue stream," Moody's vice president and senior credit officer Stuart Miller said in a news release. "However, the high multiple of trailing EBITDA being paid and the significant capital expenditures required in 2013 to build out the system have added a degree of vulnerability to Targa's existing credit rating."

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