S&P boosts Keyera

S&P said it raised its ratings on Keyera Corp. and the company's senior unsecured debt to BBB from BBB-. Additionally, the agency upgraded its rating on the company's subordinated notes to BB+ from BB.

“Keyera's financial performance has continued to strengthen based on high cash flow. The foundation of Keyera's cash flow is its strong contractual structure with creditworthy offtakers. The consistent cash flow is further supported by the company's marketing segment. Keyera's debt-to-EBITDA ratio was below 3.5x in fiscal years 2021 and 2022, demonstrating the resilience of the business, and is committed to maintaining target leverage below this level,” S&P said in a press release.

The agency said that based on the strength Keyera’s cash flow and the KAPS pipeline system becoming fully operational and helping cash flow, it forecasts leverage will be 3x-3.5x for 2023 and 2024.

The outlook is stable.

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