Fitch assigns Harvest Midstream, notes BB-

Fitch Ratings said it assigned BB- ratings to Harvest Midstream I, LP and its proposed $600 million of senior unsecured notes. Fitch also assigned an RR4 recovery rating to the notes.

“The ratings recommendation is reflective of the size of the partnership, supported by moderate diversity of cash flows, by region and asset type. By region, the performance of the partnership will be driven by natural gas and crude oil production growth of two basins, San Juan in Four Corners and Alaska, pending acquisition of the BP midstream assets, which is expected to close in the 2H20. Fitch expects an increase in HMI’s EBITDA upon closing of the transaction between BP and HMI,” Fitch said in a press release.

Proceeds will be used to repay its term loan due 2022 in full and partial prepayment of borrowings under its revolving credit facility due 2023.

The outlook is stable.

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