S&P cuts NorthRiver Midstream Finance

S&P said it downgraded its ratings for NorthRiver Midstream Finance LP and its subsidiary, NorthRiver Midstream Operations LP to BB from BB+. The agency also lowered the rating on NorthRiver's senior secured term loan to BB from BB+. The 3 recovery rating is unchanged.

“Many of NorthRiver's growth projects have been postponed until 2022, resulting in expected leverage metrics above 5.5x in 2020 and 2021. Volumes on NorthRiver's system were about 10% lower than expected at about 1.5 billion cubic feet per day (bcf/d) for the first half of 2020. We consider 2020 a challenging year for most midstream companies due to the downturn in oil and gas prices,” S&P said in a press release.

The agency said it now forecasts adjusted debt to EBITDA above 5.5x in 2020 and 2021 compared with its previous expectations of debt to EBITDA below 5x in 2020 and beyond.

The outlook is stable.

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