Fitch gives NGL Energy notes BB-

Fitch Ratings said it assigned NGL Energy Partners LP's issuance of senior unsecured notes due 2020 a BB- rating.

The notes are to be co-issued with NGL Energy Finance Corp. and will rank pari passu with the partnership's senior unsecured debt.

Proceeds will be used to repay revolver borrowings and for general partnership purposes.

Fitch currently rates NGL's long-term issuer default rating BB. NGL’s and NGL Energy Finance Corp.’s senior unsecured debt is rated BB-/RR5.

The outlook is stable.

Fitch said the BB issuer default rating is supported by NGL's strategy to maintain strong distribution coverage and operate diverse assets, which are located throughout the U.S. The partnership has significantly expanded in size and scale since its IPO over four years ago.

NGL has significant senior secured debt ahead of its senior unsecured debt and therefore, the senior unsecured debt is notched down one from the issuer default rating to BB- and the recovery rating is RR5. The RR5 indicates a below average recovery in the event of a default.

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