S&P rates Riverstone loan BB

S&P said it assigned a preliminary BB rating to Riverstone Utopia Member LLC's $225 million term loan B due 2024.

The outlook is stable.

The preliminary recovery rating is a 2, indicating 70% to 90% expected default recovery.

The ratings reflect the highly contracted nature of the pipeline, the favorable market position of the project in the Marcellus and Utica basins and the experience of Kinder Morgan as developer and operator of the project, S&P said.

The outlook is stable.

The project is nearing substantial completion and is expected to enter full operations by the end of the year, the agency said.

Although unlikely, S&P said it could take a negative rating action if there is weaker-than-expected cash flow due to difficulties experienced by Nova Chemicals or reduced coverage rations following the issuance of permitted additional debt.

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