Research Update: BCP Renaissance Parent LLC Rating Lowered To 'B' On Heightened Counterparty Risk; Outlook Stable

BCP Renaissance Parent LLC owns a 32% interest in Rover Pipeline LLC. We expect BCP's leverage metrics to remain elevated, with debt to EBITDA exceeding 9x during the next 12 months. We also see a heightened counterparty risk at Rover, following downgrades of its major shippers. As a result, we are lowering our issuer credit rating on BCP to 'B' from 'B+'. We are also lowering our issue-level rating on BCP's $1.3 billion term loan B to 'B' from 'B+'. Our '3' recovery rating is unchanged, indicating our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. The stable outlook reflects BCP's adequate liquidity, cash distributions from Rover underpinned by take-or-pay contracts, and letters

...- BCP Renaissance Parent LLC owns a 32% interest in Rover Pipeline LLC. We expect BCP's leverage metrics to remain elevated, with debt to EBITDA exceeding 9x during the next 12 months. We also see a heightened counterparty risk at Rover, following downgrades of its major shippers. - As a result, we are lowering our issuer credit rating on BCP to 'B' from 'B+'. - We are also lowering our issue-level rating on BCP's $1.3 billion term loan B to 'B' from 'B+'. Our '3' recovery rating is unchanged, indicating our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. - The stable outlook reflects BCP's adequate liquidity, cash distributions from Rover underpinned by take-or-pay contracts, and letters of credit posted by Rover's shippers....

Research Update