Glass Mountain Pipeline LLC, a crude oil transportation system connecting the STACK, Mississippi Lime, and Granite Wash plays to Cushing, Okla., is facing heightened liquidity risk due to reduced volumes and cash flows. S&P Global Ratings continues to believe Glass Mountain's liquidity levels, coupled with our expected cash flow generation, are unsustainable for the amount of fixed charges. We are affirming our 'CCC' issuer credit rating on Glass Mountain and revising the liquidity assessment to weak. Our rating on the company's senior secured debt is unchanged at 'CCC' with recovery rating of '3' (50%-70%; rounded estimate 55%). The negative outlook reflects our expectation that Glass Mountain will likely consider a distressed debt exchange or redemption within the next 12 months.
