Research Update: BCP Renaissance Parent LLC Outlook Revised To Positive From Stable On Improved Credit Metrics; Ratings Affirmed

BCP Renaissance Parent LLC owns a 32% interest in Rover Pipeline LLC. Despite the commodity market downturn in 2020, BCP repaid $95 million of its term loan balance, and reported better-than-expected credit metrics with debt to EBITDA of just above 8x at year-end 2020. As a result, we are revising our outlook on the company to positive from stable. At the same time, we are affirming our 'B' issuer credit rating on BCP and our 'B' issue-level rating on its $1.2 billion outstanding senior secured term loan B. Our recovery rating remains '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. The positive outlook reflects our expectation that BCP will continue

...- BCP Renaissance Parent LLC owns a 32% interest in Rover Pipeline LLC. Despite the commodity market downturn in 2020, BCP repaid $95 million of its term loan balance, and reported better-than-expected credit metrics with debt to EBITDA of just above 8x at year-end 2020. - As a result, we are revising our outlook on the company to positive from stable. - At the same time, we are affirming our 'B' issuer credit rating on BCP and our 'B' issue-level rating on its $1.2 billion outstanding senior secured term loan B. Our recovery rating remains '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. - The positive outlook reflects our expectation that BCP will continue to reduce its debt balance via the excess cash sweep and maintain debt to EBITDA of below 9x trending toward 8.5x during the next 12 months....

Research Update