Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed

Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed
Published May 20, 2019
6 pages (2444 words) — Published May 20, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Despite our expectation that Oklahoma City-based Glass Mountain Pipeline LLC will expand its pipeline system and throughput volumes over the medium term, the company's leverage remains high. We are revising our outlook on the company to negative from stable and are affirming our 'B' issuer credit rating. At the same time, we are affirming our 'B' issue-level rating on Glass Mountain Pipeline Holdings LLC's first-lien term loan B. The '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. The negative outlook reflects our forecast that Glass Mountain's debt to EBITDA will remain above 6.5x in 2019 due to delayed volume growth. The negative outlook reflects our expectation

  
Brief Excerpt:

...- Despite our expectation that Oklahoma City-based Glass Mountain Pipeline LLC will expand its pipeline system and throughput volumes over the medium term, the company's leverage remains high. - We are revising our outlook on the company to negative from stable and are affirming our 'B' issuer credit rating. - At the same time, we are affirming our 'B' issue-level rating on Glass Mountain Pipeline Holdings LLC's first-lien term loan B. The '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. - The negative outlook reflects our forecast that Glass Mountain's debt to EBITDA will remain above 6.5x in 2019 due to delayed volume growth....

  
Report Type:

Research Update

Ticker
1554884D
Issuer
Glass Mountain Pipeline, LLC
GICS
Oil & Gas Storage & Transportation (10102040)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed" May 20, 2019. Alacra Store. May 24, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Glass-Mountain-Pipeline-LLC-Outlook-Revised-To-Negative-On-Elevated-Leverage-Ratings-Affirmed-2235347>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Glass Mountain Pipeline LLC Outlook Revised To Negative On Elevated Leverage, Ratings Affirmed May 20, 2019. New York, NY: Alacra Store. Retrieved May 24, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Glass-Mountain-Pipeline-LLC-Outlook-Revised-To-Negative-On-Elevated-Leverage-Ratings-Affirmed-2235347>
  
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