S&P hikes Martin Midstream

S&P said it upgraded its ratings for Martin Midstream Partners LP to B from B- and its second-lien notes to B+ from B.

Martin boosted its S&P Global Ratings-adjusted EBITDA to $132 million in 2023 from $113 million in 2022 on its exit from butane and higher volumes in its terminal and storage segment. Exiting the butane business, the company repaid $130 million borrowed from its revolver, reducing its leverage to 3.7x in 2023 from 4.9x in 2022.

S&P said it forecasts Martin’s leverage to hover in the 3.5x-4x area and interest coverage to remain in the 2.3x-2.6x area through 2025.

The outlook is stable.

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