Research Update: CNX Midstream Partners L.P. Issuer Credit Rating Raised To 'BB-' Following The Upgrade Of Its Parent, Outlook Stable

On July 30, 2021, we raised our issuer credit rating on CNX Resources Corp. (CNX), the parent and general partner owner of CNX Midstream Partners L.P. (CNXM), to 'BB-' from 'B+'. Therefore, we raised our issuer credit rating on CNXM to 'BB-' from 'B+'. Our 'BB-' issue-level rating on the company's debt is unchanged. However, we are revising our recovery rating on CNXM's senior unsecured debt to '3' from '2' to indicate our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. While our analysis indicates recovery of greater than 90% for CNXM's unsecured debt, we generally cap our recovery ratings on the debt of companies we rate in the 'BB' category at '3'. The stable

...- On July 30, 2021, we raised our issuer credit rating on CNX Resources Corp. (CNX), the parent and general partner owner of CNX Midstream Partners L.P. (CNXM), to '##-' from 'B+'. - Therefore, we raised our issuer credit rating on CNXM to '##-' from 'B+'. - Our '##-' issue-level rating on the company's debt is unchanged. However, we are revising our recovery rating on CNXM's senior unsecured debt to '3' from '2' to indicate our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. While our analysis indicates recovery of greater than 90% for CNXM's unsecured debt, we generally cap our recovery ratings on the debt of companies we rate in the '##' category at '3'. - The stable outlook on CNXM reflects our stable outlook on CNX. The stable outlook on CNX reflects our expectation that CNX will maintain solid financial measures, including FFO to debt of more than 35% and debt to EBITDA of about 2x, supported by its modest financial policies that...

Research Update