Fitch nicks Martin Midstream

Fitch Ratings said it downgraded Martin Midstream Partners LP's (MMLP) long-term issuer default rating to CCC from B-. Fitch also downgraded MMLP's and co-issuer Martin Midstream Finance Corp.'s senior unsecured debt rating to CCC- from B- and revised the recovery rating to RR5 from RR4. The ratings have been placed on rating watch negative because of refinancing risk.

“Fitch has lowered MMLP's IDR to CCC reflecting concerns about refinancing risk in the near term, liquidity and the ability for the partnership to meet its 2020 EBITDA guidance of $117 million. Fitch's base case assumption for MMLP's EBITDA is below management's forecast and leverage (defined as total debt-to-adjusted EBITDA) at YE 2020 is expected to be in the range of 5.8x to 6.2x. This is above YE 2019 leverage of 5.3x,” the agency said in a press release.

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