GIP III Stetson I L.P., GIP III Stetson II L.P. Outlook Revised To Positive After Similar Action On EnLink Midstream LLC

S&P Global Ratings recently revised the outlook on EnLink Midstream LLC (EnLink) to positive from stable on improved performance and expectations of continued EBITDA growth. Given GIP III Stetson I L.P. and GIP III Stetson II L.P. (together Stetson) rely solely on distributions from EnLink to service the debt, our assessment of Stetson's credit profile is dependent on our credit rating on EnLink. Therefore, S&P Global Ratings revised the outlook on GIP III Stetson I L.P. and GIP III Stetson II L.P. to positive from stable and affirmed its 'B-' issuer credit rating on the company. TORONTO (S&P Global Ratings) Sept. 8, 2022—S&P Global Ratings today took the above rating actions. For further details on our rating action on EnLink,

...leverage in the 7.0x-7.5x area over the next 12 months. We could raise our rating on Stetson if we raise our rating on EnLink, which could occur if EnLink maintains stand-alone leverage below 5.0x on a sustained basis. We could also consider raising our rating if Stetson maintains stand-alone debt to EBITDA of less than 5.0x such that the underlying distributions from EnLink remain stable even amid prolonged weak commodity prices. We would revise our outlook on Stetson if we revise our outlook on EnLink. We would revise the outlook on EnLink to stable if its debt-to-EBITDA ratio remains above 4.25x. We could lower our rating on Stetson if EnLink reduces its distribution, which would lead us to view the company's capital structure as unsustainable....

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