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S&P cuts Glass Mountain
S&P said it downgraded Glass Mountain Pipeline LLC and its $300 million term loan to CCC from B- citing a reduction in volume that may hurt its ability to service the loan.
The recovery rating remains 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.
“Material EBITDA decline in 2020 will weaken Glass Mountain’s debt servicing ability. Our forecast adjusted EBITDA of $20 million to $30 million over the next two years reflects a material decline in Glass Mountain’s throughput volumes stemming from the production curtailment in the company’s dedicated acreage as well as exposure with Chesapeake Energy who failed to honor its minimum volume commitment contract in March 2020,” said S&P in a press release.
The outlook is negative.
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