Moody’s revises Targa view to stable

Moody's Investors Service said it changed Targa Resources Corp.'s outlook to stable from negative and affirmed its Ba2 corporate family rating, Ba2-PD probability default rating, SGL-3 speculative grade liquidity rating and B1 secured bank facility rating.

The agency withdrew Targa's senior secured term loan facility rating because the outstanding balance of $160 million was repaid in full with borrowings under its revolver.

The Ba3 senior unsecured rating and B1 preferred stock rating of Targa Resources Partners LP, wholly owned by Targa, were also affirmed.

"The change in outlook to stable reflects our expectation that Targa's improving Permian footprint and ample equity funding for projects will keep consolidated leverage around 5 times over 2018 despite increased growth capex," Moody's vice president, senior analyst Arvinder Saluja said in a news release.

"While the growing Permian-focused assets reduce volumetric risk due to higher producer activity in the basin, this will not provide meaningful EBITDA benefit until 2018.

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