S&P lifts Glass Mountain

S&P raised Glass Mountain Pipeline LLC’s rating to B from B-, citing the company’s decision to fund the southern extensions project with equity instead of borrowing money via an incremental term loan.

The agency also raised its rating on Glass Mountain’s term loan facility to B+ from B- and revised the recovery rating to 2 from 3 to reflect the lower level of debt the company would have if it defaulted. A 2 rating means a substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default.

S&P had forecasted Glass Mountain’s term loan debt balance to be $420 million with the incremental borrowing. It now forecasts the debt balance to be $295 million.

The outlook is negative because S&P estimates that adjusted debt to EBITDA will remain above 6.25x in 2019.

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