S&P revises Southcross view to negative

S&P said it revised the CreditWatch implications on its CCC+ issuer credit rating on Southcross Holdings Borrower LP and its CCC+ issue-level rating on the company's senior secured debt to negative from positive.

The 3 recovery rating on the debt remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

At the same time, S&P revised the CreditWatch implications on its CCC+ issuer credit rating on Southcross Energy Partners LP and the CCC+ issue-level rating on the company's senior secured debt to negative from positive. The 3 recovery rating remains unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

“The CreditWatch revision reflects AMID's inability to secure the necessary financing to close its previously announced transaction with Southcross Energy Partners LP (SXE) and Southcross Holdings Borrower LP Holdings). Due to the termination of the merger, Holdings should receive a $17 million termination fee from AMID, which we expect will immediately improve its liquidity,” S&P said in a news release.

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