Moody’s changes FR BR view to negative

Moody’s Investors Service said it changed FR BR Holdings’ outlook to negative from stable.

“The negative outlook reflects the increasing credit risk of Blue Racer Midstream LLC (Blue Racer or BRM, B1 negative), the sole operating subsidiary of FR BR that is facing higher counterparty risks as well as the prospect of higher financial leverage and refinancing risk under challenging industry and economic conditions,” said Sajjad Alam, a Moody’s senior analyst, in a press release.

“FR BR’s ratings reflect the underlying credit strength of BRM as well as the structural subordination of FR BR’s cash flow to the operating subsidiary,” Alam said.

The agency simultaneously affirmed the company’s B3 corporate family rating, B3-PD probability of default rating and B3 senior secured term loan rating.

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