Fitch rates DCP Midstream notes BB+

Fitch Ratings said it assigned a BB+ rating and recovery rating of RR4 to DCP Midstream Operating, LP's proposed senior unsecured notes due 2029.

The outlook is stable.

The notes are being issued by DCP Midstream Operating and are fully and unconditionally guaranteed by parent company DCP Midstream, LP.

The guarantee by DCP will rank equally in right of payment to all of DCP's existing and future unsecured senior indebtedness, Fitch said.

The proceeds will be used to repay debt under DCP Midstream Operating's revolving credit facility and for general partnership purposes, the agency said.

The ratings reflect the size, scale, scope and diversity of its asset base, Fitch said.

The ratings also recognize that the company is one of the largest producers and marketers of natural gas liquids (NGLs) and processors of natural gas in the United States, the agency said.

The ratings also take into account that its operations are exposed to volumetric risks associated with the domestic production and demand for natural gas and NGLs, Fitch said.

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