S&P lowers Glass Mountain view to negative

S&P said it revised the outlook on Glass Mountain Pipeline LLC to negative from stable and affirmed the B issuer credit rating.

The agency also said it affirmed the B rating on Glass Mountain Pipeline Holdings LLC's first-lien term loan B.

The 3 recovery rating was unchanged, indicating 50% to 70% expected default recovery.

Despite an expectation that Glass Mountain expand its pipeline system and throughput volumes over the medium term, the company's leverage remains high, S&P said.

Glass Mountain has faced delays in volume growth due to delays in Devon's volume ramp and slower-than-anticipated third-party contracting, the agency said.

This has led to an extended period of elevated leverage, S&P said.

The negative outlook reflects our forecast that Glass Mountain's debt to EBITDA will remain above 6.5x in 2019 due to delayed volume growth, S&P said.

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