GIP II Blue Holding L.P.

Overview Key strengths Key risks GIP II Blue Holding L.P. (HoldCo) receives approximately 40% of Hess Midstream L.P.?s (HESM) steadily rising distributable cash supported by HESM?s credit supportive contract profile. Exclusively relies on distributions from HESM to service its term loan. When certain conditions are met, term loan is subject to a 25%-75% excess cash flow sweep that supports deleveraging. Lack of deep market to liquidate HoldCo?s position in HESM with current trading level and price. We continue to rate HoldCo under our noncontrolling equity interest (NCEI) criteria as it relies exclusively on distributions from HESM to service its term loan and has no substantive assets other than its equity interest in HESM. The rating incorporates our view of HoldCo?s

...We continue to rate HoldCo under our noncontrolling equity interest (NCEI) criteria as it relies exclusively on distributions from HESM to service its term loan and has no substantive assets other than its equity interest in HESM. The rating incorporates our view of HoldCo's cash flow stability, corporate and governance policy, financial ratios, and its ability to liquidate its investment in HESM to repay its approximately $647 million outstanding senior secured term loan as of Dec. 31, 2022....

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