S&P downgrades Ferrellgas

S&P said it lowered its corporate credit rating on Ferrellgas Partners LP to B- from B.

The outlook is negative.

The agency also lowered the rating on the company's structurally subordinated senior unsecured debt to CCC from CCC+. The 6 recovery rating is unchanged and indicates expectations for negligible (0%-10%; rounded estimate: 0%) recovery if a payment default occurs.

At the same time, S&P lowered the corporate credit and senior unsecured debt ratings on Ferrellgas LP to B- from B.

The outlook is stable.

The 4 recovery rating is unchanged and indicates that lenders can expect average (30%-50%; rounded estimate: 35%) recovery.

The action reflects a view that the partnership's high financial leverage and limited covenant cushion will persist throughout the next 12 months, the agency said in a news release.

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