GIP III Stetson I L.P.

The stable outlook on Stetson reflects our expectation that it will maintain adequate liquidity and stand-alone adjusted debt leverage in the 10x area over the next 12 months. The stable outlook also reflects our belief that EnLink will maintain a distribution coverage ratio of more than 1.5x. We could lower our rating on Stetson if EnLink further reduces its distribution, leading us to view the company's capital structure as unsustainable. We could upgrade Stetson if we raise our rating on EnLink, which could occur if EnLink maintains stand-alone leverage of less than 4.5x. We could also consider raising our rating if Stetson maintains stand-alone debt to EBITDA of less than 5.0x. EnLink maintains a distribution coverage ratio of more than

...We expect the company's distributions to remain low in the medium term. We continue to assess GIP III Stetson I L.P.'s (Stetson) cash flow interruption risk as negative, which reflects our view that moderate levels of stress may cause EnLink to materially reduce its distributions to Stetson (as occurred in 2020). EnLink is predominantly focused on gathering and processing, which exposes the company to volumetric risk. We expect its distributions to stay low as long as oil and gas prices remain at current levels and producers continue to reduce their drilling in the basins where EnLink operates. Outlook The stable outlook on Stetson reflects our expectation that it will maintain adequate liquidity and stand-alone adjusted debt leverage in the 10x area over the next 12 months. The stable outlook also reflects our belief that EnLink will maintain a distribution coverage ratio of more than 1.5x....

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