Moody's rates Summit notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Summit Midstream Holdings, LLC's new backed senior unsecured notes due 2026.

Summit Midstream's parent is Summit Midstream Partners, LP (SMLP). Summit Midstream and SMLP's other ratings and stable outlook remain unchanged, including SMLP's B3 corporate family rating.

A portion of the outstanding senior unsecured notes due 2025, also rated Caa2, will be exchanged into the new notes at par. In addition, about $30 million of new money will likely be raised and used to redeem or repurchase the 2025 notes that are not exchanged.

Once these transactions are completed, about $49.9 million of the 2025 notes are expected to be outstanding.

"Summit Midstream's new notes should extend debt maturities while improving financial flexibility," said Amol Joshi, a Moody's vice president and senior credit officer, in a press release.

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