S&P rates Stonewall Gas loan B

Standard & Poor’s said it assigned a B- corporate credit rating to Stonewall Gas Gathering LLC.

The agency also said it assigned a B rating and 2 recovery rating to the company’s $350 million senior secured term loan B due 2022. The 2 rating indicates 70% to 90% expected default recovery.

The outlook is stable.

The ratings reflect Stonewall’s vulnerable business risk profile and highly leveraged financial risk profile, S&P said.

The ratings also consider the company’s limited scale, lack of geographic diversity and elevated construction risk over the next 12 months, the agency said.

Partially offsetting these factors is the fee-based nature of the company’s contracts once the system becomes operational, S&P said.

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