S&P revises Archrock to stable

S&P said it revised the outlook on Archrock Partners LP to stable from negative and affirmed its B corporate credit rating.

The agency also affirmed the B- issue-level rating on the company's senior unsecured notes and the BB- issue-level rating on its senior secured revolving credit facility. The recovery rating on the senior unsecured notes remains 5, indicating an expectation of modest (10% to 30%, upper half of the range) recovery in the event of a payment default. The recovery rating on the senior secured revolving credit facility remains 1, indicating an expectation of very high (90% to 100%) recovery in the event of a payment default.

"The rating action reflects our expectation of credit measures to be better than previously anticipated, attributing the improvement to better market conditions, a slight reduction of debt in 2016, and an equity-financed asset drop-down,” S&P analyst Stephen Scovotti said in a news release.

"We now expect the company to maintain adjusted debt to EBITDA of slightly below 5x in 2017."

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