Fitch cuts Western Midstream

Fitch Ratings said it downgraded Western Midstream Operating, LP's long-term issuer default rating and senior unsecured ratings to BB+ from BBB- and placed the partnership’s ratings on rating watch negative. The senior unsecured notes have a recovery rating of RR4.

The downgrade reflects the deterioration in Western's credit quality following Fitch's negative rating action of its owner and major counterparty, Occidental Petroleum Corp.

Western's counterparty risk is significantly heightened, as the partnership is now predominately exposed to non-investment grade counterparties. The ratings take into account Western's significant dependence on Occidental and its performance is mostly driven by its parent's balance sheet, Fitch said.

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