Fitch rates FR BR loan B-

Fitch Ratings said it assigned a long-term issuer default rating of B- to FR BR Holdings, along with a senior secured rating of B- with recovery rating of RR4 to its proposed $500 million senior secured term loan B.

The outlook is stable.

The ratings reflect the agency's criteria for investment holding companies. FR BR owns a 50% stake in Blue Racer Midstream, LLC and has no other assets, Fitch said.

Dividends from Blue Racer are FR BR's sole source of cash flow in support of the term loan, the agency said.

Fitch said it views FR BR's revenue stream as having no diversity and the term loan as effectively subordinate to the operating and cash flow needs at Blue Racer.

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