Fitch rates DTE debentures BB+

Fitch Ratings said it assigned a rating of BB+ to DTE Energy Co.’s issuance of $200 million of series G 4 3/8% junior subordinated debentures maturing on Oct. 15, 2080.

The debentures rank junior to DTE’s other unsecured debt.

Proceeds will be used to repay $200 million outstanding of 2012 series C 5¼% junior subordinated debentures maturing in 2062, callable at par since Dec. 1, 2017.

Fitch affirms, pulls DCP Midstream from watch

Fitch Ratings said it affirmed DCP Midstream, LP and DCP Midstream Operating, LP long-term (lt) issuer default rating at BB+. The senior unsecured ratings and junior subordinated notes for DCP Operating have been affirmed at BB+/RR4 and BB-/RR6, respectively. Additionally, Fitch affirmed DCP’s preferred equity ratings at BB-/RR6. Fitch also removed the rating watch negative and assigned a stable outlook.

“The removal of the RWN and assignment of stable outlook reflects Fitch’s expectation that DCP’s leverage will remain elevated but lower than our previous forecast in March 2020. Fitch now sees improved YE 2020 leverage in a range of 4.8x-5x, which ticks up to a 5x-5.2x range at YE 2021, absent any asset sales or further distribution cuts, remaining below the 5.5x negative rating sensitivity,” Fitch said in a press release.

Fitch assigns Kemper notes BBB

Fitch Ratings said it assigned a BBB rating to Kemper Corp.’s $400 million offering of senior unsecured notes maturing in 2030. The rating is equivalent to the ratings on Kemper’s senior debt.

The proceeds are expected to be used for general corporate purposes.

Pro forma financial leverage is expected to increase to 24.7%, up from 17.8% as of June 30, remaining within sensitivities for the current rating category, Fitch said.

S&P gives DTE Energy notes BBB-

S&P said it assigned its BBB- rating to DTE Energy Co.’s junior subordinated debentures due Oct. 15, 2080.

“We rate these securities BBB-, two notches below our BBB+ issuer credit rating on DTE. Our BBB- issue-level rating reflects the debentures’ subordination and the company’s ability to defer interest payment on the debentures,” S&P said in a press release.

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