S&P raises Rockies Express, Tallgrass

Standard & Poor's said it raised its corporate credit and senior unsecured debt ratings on Rockies Express Pipeline LLC (REX) to BB+ from BB.

The outlook is stable.

The 4 recovery rating on the senior unsecured notes is unchanged and reflects an expectation for average (30% to 50%; in the upper half of the range) recovery of a payment default occurs.

In addition, the agency raised the corporate credit rating on Tallgrass Development LP to BB- from B+. The outlook is stable.

S&P raised Tallgrass’ issue-level rating to BB+ from BB- and revised the recovery rating to 1 from 2. The 1 rating indicates an expectation for very high (90% to 100%) recovery if a payment default occurs.

"The upgrade on REX reflects the expectation of improved financial measures following the repayment of the 2015 notes in addition to recent progress on contractual volume throughput," S&P credit analyst Mike Llanos said in a news release.

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