Fitch rates Summit Midstream notes CCC

Fitch Ratings said it assigned CCC/RR6 ratings to Summit Midstream Holdings, LLC's senior unsecured notes.

The agency also affirmed Summit Midstream Partners, LP's (Summit) and Summit Midstream's long-term issuer default rating at B- and Summit Midstream's second-lien secured debt at B+/RR2.

“Per Summit's proposed refinancing transaction, a portion of the existing senior unsecured notes due 2025 will exchange into new notes at par, with maturity in 2026. The partial refinancing of 2025 notes is expected to meaningfully increase Summit's interest burden and create a refinancing cliff in 2026 when the majority of the company's debt will be due. Fitch views the transaction to be leverage neutral, but EBITDA interest coverage will diminish as previously expected, and may remain lower for longer given the underlying fundamentals,” Fitch said in a statement.

The outlook is stable.

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