S&P ups Martin Midstream

S&P said it raised its Martin Midstream Partners LP’s issuer rating to B- from SD following an exchange that slashed the principal of the senior unsecured notes due February 2021 to $29 million from $364 million.

“Our rating is based on Martin's limited scale and adjusted financial leverage of about 5.5x. The partnership's business is concentrated in the U.S. Gulf Coast and is small as measured by expected adjusted EBITDA of $100 million-$105 million in 2020. We forecast the partnership's adjusted-debt-to EBITDA ratio to be approximately 5.5x,” S&P said in a press release.

S&P upgraded the rating on Martin's remaining 2021 notes to CCC from D. The 6 recovery rating on the notes indicates negligible recovery (0-10%; rounded estimate: 0%) in the event of a payment default.

The agency assigned a B+ issue-level rating to Martin’s new $53.8 million of 1.5-lien notes due 2024. The 1 recovery rating indicates a very high recovery (90%-100%; rounded estimate: 95%). S&P also assigned a B- issue-level rating to Martin’s new $292 million of second-lien notes due 2025. The 3 recovery rating indicates meaningful recovery (50%-70%; rounded estimate: 60%).

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.