S&P trims Antero Midstream

S&P said it downgraded Antero Midstream Partners LP and the issue-level ratings on the partnership’s unsecured debt to B+ from BB. The recovery rating of 3 is unchanged indicating an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in a payment scenario.

S&P recently downgraded Antero Resources Corp. the partnership’s former parent and majority customer to B+ from BB.

“The rating action on AM reflects our consideration of Antero Midstream Partners LP (AM) as strategically important to Antero Resources Corp. (AR). AR owns 28% of AM, and it holds two of nine of AM’s board seats. While the lack of control provides some separation between the two entities, AM and AR still depend on each other. AM derives nearly 100% of its revenues from AR, and they share a management team. We consider the two entities inherently linked, and we continue to link the ratings, with our rating on AM constrained by that of AR,” said S&P in a press release.

The outlook remains negative.

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