Moody’s lifts Oneok Partners view to stable

Moody's Investors Service said it affirmed Oneok Partners, LP's Baa2 senior unsecured rating and P-2 short-term rating.

The agency also said it revised the company’s outlook to stable from negative.

Rebounding from 2015's lows, the company’s EBITDA, debt leverage and distribution coverage have improved and realigned to levels supporting a Baa2 rating with a stable outlook, Moody's said.

The company acted decisively to reduce its sensitivity to commodity-price risk and remained focused on contracted growth opportunities existing within its expansive midstream operating footprint, which generated incremental EBITDA, the agency explained.

The ratings also reflect the integrated nature of the company’s natural gas and natural gas liquids (NGLs) asset base, which were augmented through about $5 billion of growth capital spending from 2013 through 2016, Moody’s said.

This investment has generated strong EBITDA growth, the majority of which is originated from fee-based sources in its natural gas liquids and natural gas pipelines operating segments, the agency said.

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