S&P lifts Woodford view to positive

S&P said it affirmed Woodford Express LLC's B issuer credit rating and revised the outlook to positive.

The outlook revision is based on the financial outperformance, an updated view on the company's financial policy and a view that profitability is likely to be more stable than previously expected.

The senior secured term loan is rated at B+ with recovery rating of 2, indicating 80% expected default recovery.

Woodford Express has outperformed the EBITDA expectations in 2018, S&P explained.

The agency said it thinks that leverage will likely fall below 4.5x over the next 12 months and remain there over the next few years.

This updated view is also based on an expectation that Quantum Energy Partners, the financial sponsor, intends to maintain leverage in the 4x to 5x range going forward, S&P said.

The positive outlook reflects a view that both the company's scale and EBITDA will grow over the next year without the need for robust capital spending as volumes from customers and system utilization continue to increase, the agency said.

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