Fitch rates Antero Midstream notes BBB-

Fitch Ratings said it assigned a rating of BBB- to Antero Midstream Partners, LP's proposed offering of senior unsecured notes due 2027.

The proceeds from the offering are expected to be used to repay borrowings under Antero's credit facility, Fitch said.

The ratings reflect the company's strong credit linkage with Antero Resources, Inc., its operating owner and primary counterparty, the agency said.

The ratings also consider the low leverage and conservative financial profile of the partnership supported by fee-based and fixed-priced contracts that limit commodity price exposure and provide some volume protection in the form of minimum volume commitments, Fitch said.

On a standalone basis, Antero Midstream's financial profile meets minimum size and scale thresholds that are important for an investment-grade rating within the midstream space, the agency said.

Counterparty concentration and its single-basin gathering and processing focus are of greater concern, Fitch said.

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