Research Update: CNX Midstream Partners L.P. Rating Lowered To 'B+' From 'BB-' On Downgrade Of Parent; Outlook Negative

On Feb. 3, 2020, we lowered our rating on CNX Resources Corp. (CNX), parent and general partner owner of CNX Midstream Partners L.P. (CNXM), to 'B+' from 'BB-' because of our weaker natural gas price assumptions and its impact on CNX's ability to refinance upcoming debt maturities in 2022. Therefore, we are lowering our issuer credit rating on CNXM to 'B+' from 'BB-'. The outlook remains negative. Our 'BB-' issue-level rating on the company's debt is unchanged. However, we are revising our recovery rating to '2' from '3' to indicate our expectation for substantial (70%-90%; rounded estimate: 85%) recovery in a payment default scenario. The negative outlook on CNXM reflects our negative outlook on CNX, from which the company derives

...- On Feb. 3, 2020, we lowered our rating on CNX Resources Corp. (CNX), parent and general partner owner of CNX Midstream Partners L.P. (CNXM), to 'B+' from '##-' because of our weaker natural gas price assumptions and its impact on CNX's ability to refinance upcoming debt maturities in 2022. - Therefore, we are lowering our issuer credit rating on CNXM to 'B+' from '##-'. The outlook remains negative. - Our '##-' issue-level rating on the company's debt is unchanged. However, we are revising our recovery rating to '2' from '3' to indicate our expectation for substantial (70%-90%; rounded estimate: 85%) 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 in the low-3x area in 2020 and 2021....

Research Update