Research Update: CNX Midstream Partners L.P. Outlook Revised To Stable Following Take-In Transaction; 'B+' Issuer Credit Rating Affirmed

U.S.-based midstream energy partnership CNX Midstream Partners L.P. recently announced CNX Resources Corp. 's intention to acquire the remaining public stake in CNX Midstream with an expected transaction close in the fourth quarter of 2020. On Aug. 27, 2020, we revised the outlook on CNX Resources Corp. (CNX), the parent and general partner owner of CNX Midstream Partners L.P. (CNXM) to stable from negative. We are revising the outlook on CNXM to stable from negative because the transaction strengthens our view on the strategic importance of CNXM relative to CNX. At the same time, we are affirming our 'B+' issuer credit rating on CNXM and our 'BB-' issue-level rating on the senior unsecured notes. The recovery rating remains '2', indicating

...- U.S.-based midstream energy partnership CNX Midstream Partners L.P. recently announced CNX Resources Corp. 's intention to acquire the remaining public stake in CNX Midstream with an expected transaction close in the fourth quarter of 2020. - On Aug. 27, 2020, we revised the outlook on CNX Resources Corp. (CNX), the parent and general partner owner of CNX Midstream Partners L.P. (CNXM) to stable from negative. - We are revising the outlook on CNXM to stable from negative because the transaction strengthens our view on the strategic importance of CNXM relative to CNX. - At the same time, we are affirming our 'B+' issuer credit rating on CNXM and our '##-' issue-level rating on the senior unsecured notes. The recovery rating remains '2', indicating our expectations for substantial (70%-90%; rounded estimate: 85%) recovery in a payment default scenario. - The stable outlook on CNXM reflects our stable outlook on CNX. We expect that CNX will maintain funds from operations (FFO) to debt in...

Research Update