Research Update: Magellan Midstream Partners L.P. 'BBB+' Rating Affirmed, Outlook Stable; New Debt Rated 'BBB+'

We are affirming the 'BBB+' issuer credit rating on Magellan Midstream Partners L.P. The outlook is stable. At the same time, we are affirming the 'BBB+' issue-level rating on the partnership's unsecured notes and assigning a 'BBB+' issue-level rating to its planned $500 million senior unsecured note offering. The stable outlook reflects our expectation that the partnership will see a decline in volumes in its refined products segment in 2020 relating to a decline in demand, especially for jet fuel and gasoline. We expect the partnership's crude oil segment to maintain relatively stable operations given the long-term contracts that exist in this segment. We expect the partnership to maintain leverage in the 3.6x-3.8x range and distribution coverage above 1.1x in

...- We are affirming the '###+' issuer credit rating on Magellan Midstream Partners L.P. The outlook is stable. - At the same time, we are affirming the '###+' issue-level rating on the partnership's unsecured notes and assigning a '###+' issue-level rating to its planned $500 million senior unsecured note offering. - The stable outlook reflects our expectation that the partnership will see a decline in volumes in its refined products segment in 2020 relating to a decline in demand, especially for jet fuel and gasoline. We expect the partnership's crude oil segment to maintain relatively stable operations given the long-term contracts that exist in this segment. We expect the partnership to maintain leverage in the 3.6x-3.8x range and distribution coverage above 1.1x in 2020. We also expect the partnership to continue to maintain a prudent financial policy....

Research Update