S&P cuts GIP III, GIP II Stetson

S&P said it downgraded GIP III Stetson I LP and GIP III Stetson II LP to B- from B. The agency also downgraded the issue-level ratings to B- from B. The 3 recovery rating on the $1 billion term loan B due 2025 remains unchanged, indicating expectations lenders will receive meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“We expect that leverage will be elevated between 9x and 10x for the next two years due to EnLink Midstream LLC's announcement that it will cut its distribution by an additional 50% to $0.375 per unit annually from our previous expectation of about $0.75 per unit annually,” the agency said in a press release.

The outlook is stable.

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