Moody's rates MGG loan Ba3, ups Magellan Midstream to Baa3

Moody's Investors Service said it assigned a Ba1 corporate family rating to MGG Holdings LP and a Ba3 rating to its proposed senior secured term loan. Moody's also upgraded the senior unsecured debt ratings of Magellan Midstream Partners LP to Baa3 from Ba1.

The outlook is stable

The upgrade concludes a review for upgrade initiated on June 20 after Magellan demonstrated a sustained improvement in its credit profile.

These rating actions reflect Magellan's continued strong performance from the Shell assets that have been reasonably in line with Magellan's forecasts in the first year since they were acquired. Further, Magellan's legacy assets - the Magellan Pipeline and terminals -have sustained modest gains from increased unit rates and volumes, the agency said.

Magellan's credit metrics are solidly in line with, or somewhat better than, the average of investment grade peers'. Since it was formed over five years ago, the company has accrued a track record of sound financial policy and a consistent strategic focus on product pipelines and terminals, the agency said.

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