Moody’s views Rockies Express negatively

Moody’s Investors Service said it revised its outlook for Rockies Express Pipeline LLC (REX) to negative from stable and affirmed the Ba2 ratings on the company and its senior unsecured notes.

"The outlook change reflects the highly leveraged nature of REX's majority owner, Prairie Acquiror LP (Prairie,B1 negative), and our expectation that Prairie's consolidated leverage is poised to exceed our downgrade threshold through 2025, due to the more than $1 billion of added debt it will need to construct its Trailblazer CO2 conversion project. Prairie's reliance on REX to service its debt weighs on REX's credit profile," said John Thieroff, a Moody's senior credit officer, in a press release.

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