Moody’s rates DCP Midstream preferreds B1

Moody's Investors Service said it assigned a B1 rating to DCP Midstream, LP's proposed series B fixed- to floating-rate cumulative redeemable perpetual preferred units (preferred units).

DCP's existing ratings, including the Ba2 corporate family rating, Ba2-PD probability of default rating, B1 rating on the series A perpetual preferred units and SGL-3 speculative grade liquidity rating, are unchanged.

Additionally, the Ba2 ratings on the senior unsecured notes and the B1 rating on the junior subordinated notes, which are obligations of DCP Midstream Operating, LP, are unchanged.

The outlook is stable.

"Proceeds from DCP's proposed issuance of preferred units will be used for funding growth capital expenditures and the repayment of revolving credit facility borrowings," Moody's vice president James Wilkins said in a news release.

"For analytical purposes, Moody's will treat the preferred units as 100% equity."

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