Fitch rates Rockpoint Gas, notes

Fitch Ratings said it assigned a long-term issuer default rating of B- to Rockpoint Gas Storage Partners LP.

The agency also assigned a B- issuer default rating to Rockpoint Gas Storage Canada Ltd., which is guaranteed by its parent RGS.

In addition, Fitch assigned B/RR3 ratings to Rockpoint Gas Storage Canada's senior secured notes.

Proceeds will be used for debt repayment.

The outlook is stable.

Fitch said the ratings reflect Rockpoint Gas’ small size (as measured by EBITDA), its activity in the volatile midstream sub-segment of natural gas storage and its geographical concentration in the province of Alberta.

Leverage for fiscal year ending March 31, 2019 is expected to be over 6 times.

The B/RR3 ratings reflect the expectation for above average recovery (50% to 70%) in the event of default, the agency added.

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