S&P lifts Midcontinent view to stable

S&P said it affirmed the BBB- issuer credit rating and BBB- senior unsecured rating on Midcontinent Express Pipeline.

The agency also said it revised the outlook to stable from negative, given a view that both refinancing risk and recontracting risk have been mitigated, S&P said.

The stable outlook also is based on a view that leverage won't materially change from current levels in 2019 and the senior notes will be repaid at maturity with sponsor equity, the agency said.

Kinder Morgan recently stated publicly that the senior unsecured notes at Midcontinent will be repaid in full with resources from the sponsors when the notes mature Sept. 15, 2019, S&P explained.

The agency said it views this as a credible repayment plan that virtually eliminates refinance risk.

The senior unsecured notes are the only outstanding debt at the company, S&P notes.

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