Moody's cuts Buckeye debt

Moody's Investors Service said it downgraded Buckeye Partners, LP's long-term senior debt rating to Baa3 from Baa2, concluding a review for possible downgrade that commenced on Dec. 21.

The outlook is stable.

The downgrade primarily reflects the company's increasing aggressive growth strategy and high financial leverage levels, Moody's said.

Buckeye's asset base exhibits overall low business risk and strong stability of cash flows, the agency said. However, its legacy assets are mature, which has resulted in the company becoming more transaction oriented, expanding into new geographic regions and different business lines.

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