Moody’s ups Third Coast bonds

Moody’s Investors Service said it upgraded Third Coast Midstream LLC’s senior unsecured notes rating to Caa1 from Caa2.

“The upgrade of Third Coast’s senior unsecured notes to one notch below the CFR follows the extension of the secured revolver and reduction in size and secured debt outstanding,” said Jonathan Teitel, a Moody’s analyst, in a press release. “Ratings are constrained by the bond maturity in 2021, but Third Coast’s significant debt reduction, supported by non-core asset sales since being taken private, better positions the company for refinancing.”

The agency also affirmed Third Coast’s corporate family rating at B3 and probability of default rating at B3-PD. Concurrently, Moody’s changed the outlook to stable from negative.

The outlook reflects Third Coast’s significant debt reduction, moderate financial leverage and solid free cash flow generation that has better positioned the company to refinance its debt maturing in 2021, the agency said.

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