Moody’s reviews SemGroup

Moody's Investors Service said it placed the ratings of SemGroup Corp. under review for upgrade, including the B2 corporate family rating and the Caa1 senior unsecured note rating following SemGroup's announced agreement to purchase all of the outstanding common units of Rose Rock Midstream, LP.

At the same time, Moody's affirmed all of its ratings on Rose Rock, including the B1 corporate family rating, the probability of default rating of B1-PD, the B2 senior unsecured note ratings and the SGL-3 speculative grade liquidity rating. The outlook for Rose Rock remains stable.

"The announced transaction will simplify the corporate structure and potentially reduce the combined company's cost of capital over the long term," Moody's senior analyst John Thieroff said in a news release.

"Resolution of our review of SemGroup's ratings will depend on the ultimate structure, guarantees and our expectations for the company's intended leverage targets."

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