Moody's lowers Martin Midstream

Moody's Investors Service said it downgraded Martin Midstream Partners LP's corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior unsecured notes rating to Caa2 (LGD 5) from Caa1 (LGD 5) and speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook also was changed to stable from positive.

The downgrades reflect Martin Midstream's weak liquidity with near-term pending debt maturities, constraints on financial flexibility and execution risks on de-leveraging and growth strategies, Moody's said.

The ratings also consider the company's small scale, geographic concentration, liquidity pressures and execution challenges to its strategies, the agency said.

Moody's said the company is still exposed to commodity price fluctuations as evidenced by meaningful weakness in the butane business during the fourth quarter of 2018 and first quarter of 2019.

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