S&P affirms Traverse Midstream

S&P said it affirmed its B+ issuer credit rating on Traverse Midstream Partners LLC. The outlook is stable.

At the same time, S&P affirmed the B+ issue-level rating on the company's $1.4 billion senior secured term loan due in 2024 and lowered the recovery rating to 4 from 3. The 4 recovery rating indicates S&P’s view that lenders can expect average (30%–50%; rounded estimate: 40%) recovery if a payment default occurs.

The change in recovery rating is due to the incremental debt that the company is raising, S&P said in a news release.

“The affirmation of the B+ issuer credit rating reflects our view that credit metrics will remain in line with our expectations despite delayed cash flows and increased capital costs from Rover Pipeline LLC. Traverse is seeking an amendment to the term loan B to raise an additional $150 million.”

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