S&P cuts Midcontinent Express to negative

Standard & Poor's said it revised its outlook on Midcontinent Express Pipeline LLC to negative from stable.

In addition, the agency said it affirmed its BBB- corporate credit rating on the company and its BBB- issue-level rating on its senior unsecured notes.

"The outlook revision on MEP reflects our expectation that the company's cash flow could be pressured over time due to sustained compression in basis differentials, which heightens recontracting risk in 2019, combined with increased counterparty risk," said S&P credit analyst William Ferara in a news release.

The agency said it expects debt to EBITDA to remain at about 4.5x, which is adequate for the rating, in the near term.

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