Moody's gives DCP Midstream notes Baa3

Moody's Investors Service said it assigned a Baa3 senior unsecured rating to DCP Midstream Operating, LP's proposed $725 million senior unsecured notes.

DCP Midstream Operating, LP is the principal operating subsidiary of DCP Midstream Partners, LP, which fully and unconditionally guarantees the notes. DCP Midstream's existing ratings are unchanged and the outlook remains stable.

The proceeds from the notes will be used to partially fund the announced $1.15 billion dropdown of assets from DCP Midstream's general partner, DCP Midstream, LLC (Baa2 stable).

Moody's said the Baa3 senior unsecured rating reflects a Ba1 standalone credit profile and one notch of uplift because of its integrated relationship with and strategic importance to DCP and its owners Phillips 66 (Baa1 stable) and Spectra Energy (Baa2 stable).

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