S&P boosts Harvest Midstream

S&P said it boosted Harvest Midstream I LP’s issuer rating to BB- from B+ and affirmed the BB- issue-level but lowered the recovery rating on its senior unsecured notes to 3 from 2. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 65%) recovery in default. A 2 rating indicates a substantial recovery ranging from 70%-90%.

“The upgrade reflects Harvest's stronger-than-anticipated financial measures. The partnership ended 2021 with leverage below 3x compared with our expectation of approximately 3.5x-4x, and we expect leverage will remain below 4x in the long term. The improved leverage profile reflects stronger commodity prices and recent asset acquisitions. The partnership has realized a full year of earnings from the Trans Alaska Pipeline System (TAPS), a deal that closed in December 2020, and its EBITDA and leverage have benefited from this transaction,” S&P said in a press release.

The outlook is stable.

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