S&P gives Rockpoint notes BB-

S&P said it assigned its BB- issue-level rating to the $400 million senior secured notes issued by Rockpoint Gas Storage Canada Ltd., a subsidiary of Rockpoint Gas Storage Partners LP.

The 4 recovery rating reflects an expectation of average (30%-50%; rounded estimate: 40%) recovery in a default scenario.

At the same time, the agency affirmed its BB- long-term corporate credit rating on Rockpoint.

The outlook is stable.

“The ratings reflect our assessment that the notes' issuance will have no meaningful impact on Rockpoint's financial leverage, because the notes will refund the $150 million term loan due December 2018 and $219 million senior unsecured notes maturing April 2019,” S&P said in a news release.

“However, the refinancing will improve the company's financial flexibility to some extent by extending the debt maturity.”

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