Moody’s changes Summit Midstream to stable

Moody's Investors Service said it changed Summit Midstream Holdings, LLC's rating outlook to stable from positive.

Concurrently, the agency affirmed all other ratings, including the B1 corporate family rating, B1-PD probability of default rating and the B2 rating on the company's senior unsecured notes. The SGL-3 speculative grade liquidity rating was also affirmed.

Moody’s said the stable outlook reflects higher than expected leverage more consistent with its B1 corporate family rating. Summit Midstream Partners Holdings, LLC, a wholly owned subsidiary of Summit Midstream Partners, LLC (Summit Investments), dropped down several assets including certain Williston Basin, DJ Basin, and Utica gathering assets into Summit in early 2016. The Utica assets require significant additional capital spending and development in order to realize the company's expected EBITDA and cash flow growth.

The execution risk associated with developing these assets is compounded by stressed energy industry conditions and challenging capital markets access, Moody’s said.

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