Research Update: CNX Midstream Partners L.P. Outlook Revised To Negative After Outlook Revision On Parent CNX Resources; ICR Affirmed

On Oct. 11, 2019, we revised our outlook on CNX Resources Corp. (CNX), the parent and general partner of CNX Midstream Partners L.P. (CNXM), to negative due to lower commodity prices. Therefore, we are affirming our 'BB-' issuer credit rating on CNXM and are revising our outlook to negative from stable. Our 'BB-' issue-level rating on the company's debt remains unchanged. However, we are revising our recovery rating to '3' from '4' to indicate our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. The negative outlook on CNXM reflects our negative outlook on CNX, from which the company derives the vast majority of its volumes and revenue. We expect CNXM to sustain adjusted debt to

...- On Oct. 11, 2019, we revised our outlook on CNX Resources Corp. (CNX), the parent and general partner of CNX Midstream Partners L.P. (CNXM), to negative due to lower commodity prices. - Therefore, we are affirming our '##-' issuer credit rating on CNXM and are revising our outlook to negative from stable. - Our '##-' issue-level rating on the company's debt remains unchanged. However, we are revising our recovery rating to '3' from '4' to indicate our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment default scenario. - The negative outlook on CNXM reflects our negative outlook on CNX, from which the company derives the vast majority of its volumes and revenue. We expect CNXM to sustain adjusted debt to EBITDA of about 3.0x-3.5x in 2019 and in the 2.8x-3.0x range in 2020....

Research Update