S&P rates Oneok notes BBB

S&P said it assigned a BBB rating to Oneok Inc.'s proposed notes.

The BBB rating on the company's existing notes due 2048 is unchanged.

Oneok plans to issue senior unsecured notes due 2029 and will add-on to its existing $450 million 5.20% senior unsecured notes due 2048.

The notes will be fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by Oneok Partners and Oneok Partners Intermediate LP.

The proceeds will be used for general corporate purposes, which may include repaying existing debt and funding its growth capital spending.

The stable outlook reflects a view that Oneok's adjusted debt-to-EBITDA ratio will be somewhat elevated in the 4.5x to 4.7x range in 2019 as it finances key growth projects.

The company's leverage is expected to decrease to lower than 4.5x in 2020, the agency added.

The outlook also reflects a belief that Oneok will maintain adequate liquidity, a distribution coverage ratio of more than 1.2x and hedge a large percentage of its commodity price-exposed volumes, S&P said.

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