Research Update: Summit Midstream Partners L.P. Rating Raised To 'CCC+' From 'SD'; Outlook Negative

Summit Midstream Partners L.P. (SMLP) completed several distressed transactions in the second half of 2020, and S&P Global Ratings is now reassessing credit quality of the partnership. We are raising our issuer credit rating on SMLP to 'CCC+' from 'SD' (selective default). The outlook is negative. We are raising our rating on Summit Midstream Holdings LLC's senior unsecured debt to 'CCC+' from 'D', reflecting our '3' recovery rating. The recovery rating reflects our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. We are also raising our rating on SMLP's preferred stock to 'CC' from 'D'. The ratings transition to 'CC' highlights the downside risk associated with the security's ongoing distribution deferral. The negative outlook

...- Summit Midstream Partners L.P. (SMLP) completed several distressed transactions in the second half of 2020, and S&P Global Ratings is now reassessing credit quality of the partnership. - We are raising our issuer credit rating on SMLP to '###+' from '##' (selective default). The outlook is negative. - We are raising our rating on Summit Midstream Holdings LLC's senior unsecured debt to '###+' from 'D', reflecting our '3' recovery rating. The recovery rating reflects our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. - We are also raising our rating on SMLP's preferred stock to '##' from 'D'. The ratings transition to '##' highlights the downside risk associated with the security's ongoing distribution deferral. - The negative outlook reflects the heightened refinancing risk associated with the revolving credit facility (RCF)(unrated) and the 5.5% senior unsecured notes, both maturing in 2022. We forecast the partnership will achieve an adjusted...

Research Update