S&P affirms GIP III Stetson I

S&P said it affirmed its B+ issuer credit rating on GIP III Stetson I LP, which owns the general partner of its MLP, EnLink Midstream Partners LP. The outlook is stable.

At the same time, S&P affirmed the B+ issue-level rating and revised the recovery rating on the $1 billion term loan B due 2025 to 3 from 4. The 3 recovery rating indicates an expectation that lenders will receive meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

On Oct. 22, ENLC announced it will acquire all of EnLink's outstanding common units that it does not already own. The equity-for-equity simplification transaction is expected to improve EnLink's cost of capital, eliminate its incentive distribution rights (IDRs), strengthen its distribution coverage ratio, and allow the company to partially fund its capital growth opportunities with internally generated funds, S&P said in a news release.

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