S&P changes Hi-Crush view to negative

Standard & Poor's said it revised its outlook on Hi-Crush Partners LP to negative from stable and affirmed its B+ corporate credit rating.

At the same time, the agency affirmed its BB- issue-level rating on the company's senior secured credit facilities. The recovery rating remains 2, indicating an expectation for substantial (70% to 90%; upper half of the range) recovery in the event of a payment default.

"The negative rating outlook reflects our view that Hi-Crush's EBITDA and cash flows will trend lower, placing further pressure on the company's credit measures and liquidity position over the next 12 months as a result of lower demand and weaker pricing for frac sand," S&P credit analyst Ryan Gilmore said in a news release.

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