S&P puts SemGroup on CreditWatch positive

S&P said it placed the B+ issuer credit and senior unsecured issue-level ratings and BB senior secured issue-level rating on SemGroup Corp. on CreditWatch with positive implications on Energy Transfer LP’s plans to acquire SemGroup.

The recovery ratings on the company’s senior secured and senior unsecured debt are unchanged at 1 and 4, respectively.

S&P also put the BB- ratings for SemGroup’s Hfotco LLC on CreditWatch with positive implications. The 3 recovery rating on the secured term loan is unchanged.

“The CreditWatch placement reflects our expectation that post acquisition, SEMG and Hfotco will be fully integrated into ET, and, as a result, the ratings will be equalized with that on ET at BBB-,” said S&P in a press release.

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