S&P ups Western Midstream Operating

S&P said it raised its ratings on Western Midstream Operating LP and its senior unsecured notes to BB+ from BB. The senior unsecured recovery rating of 3 (rounded estimate: 65%) is unchanged.

The upgrade follows the agency’s upgrade of Western Midstream’s main customer Occidental Petroleum Corp., S&P said.

“OXY contributes about 65% of Western's revenue so its creditworthiness is a key input when assessing counterparty risk and cash flow stability at Western. The outlook on OXY directly affects our rating outlook on Western because we limit the rating on Western to one notch higher than OXY,” the agency said in a press release.

The outlook is stable.

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