Research Update: Glass Mountain Pipeline LLC Upgraded To 'B' On Lower Forecast Leverage Due To Equity Contribution, Outlook Negative

Glass Mountain Pipeline LLC has chosen to fund the southern extension project with equity contributions from its sponsor instead of raising debt through an incremental term loan facility. We are raising our issuer credit rating on Glass Mountain Pipeline LLC to 'B' from 'B-' to reflect its lower forecast leverage. At the same time, we are raising our issue-level rating on the company's term loan B facility to 'B+' from 'B-' and are revising our recovery rating to '2' from '3' to reflect the lower level of debt for repayment at default. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. The negative outlook on Glass Mountain Pipeline

...- Glass Mountain Pipeline LLC has chosen to fund the southern extension project with equity contributions from its sponsor instead of raising debt through an incremental term loan facility. - We are raising our issuer credit rating on Glass Mountain Pipeline LLC to 'B' from 'B-' to reflect its lower forecast leverage. - At the same time, we are raising our issue-level rating on the company's term loan B facility to 'B+' from 'B-' and are revising our recovery rating to '2' from '3' to reflect the lower level of debt for repayment at default. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. - The negative outlook on Glass Mountain Pipeline reflects its elevated leverage as we expect that its debt to EBITDA will remain above 6.25x in 2019....

Research Update