Fitch cuts Centurion Pipeline

Fitch Ratings said it downgraded Centurion Pipeline Co. LLC's long-term issuer default rating to BB- from BB. Also, Fitch downgraded the senior secured term loan and revolver rating to BB/RR1 from BB+/RR1. The recovery rating of RR1 reflects Fitch's expectations of an outstanding recovery in the range of 91% to 100% if there is an event of default. The agency also revised the outlook to negative from stable.

The downgrade to Centurion reflects the negative rating action at Centurion's primary counterparty, Occidental Petroleum Corp. Fitch had previously written that a substantial credit quality deterioration at Occidental could lead to a downgrade at Centurion, the agency said. Fitch recently downgraded Occidental

The negative outlook reflects Fitch's concerns around near term challenges in a weak oil price environment and its continued effect on producer activity.

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