Moody’s reviews Targa Resources

Moody's Investors Service said it affirmed all ratings of Targa Resources Partners LP (TRP), including the Ba1 corporate family rating, Ba2 senior unsecured note ratings, Ba3 preferred unit rating and the SGL-3 speculative grade liquidity rating following Targa Resources Corp.'s (TRC) announced agreement to purchase all of the outstanding common units of TRP.

TRC's Ba3 senior secured credit facility ratings and SGL-3 speculative grade liquidity rating were also affirmed.

Additionally, the agency placed the Ba3 corporate family rating and the Ba3-PD probability of default rating for TRC, under review for upgrade.

The outlook for TRP remains stable.

"The announced transaction will somewhat simplify the corporate structure and potentially reduce the combined company's cost of capital over the long term," Moody's senior analyst Arvinder Saluja said in a news release.

"However, the transaction has no immediate effect to the combined company's overall financial leverage or the relative priority of the respective debt and preferred equity instruments."

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