Fitch ups Boardwalk, rates notes BBB

Fitch Ratings said it upgraded its long-term issuer default and senior unsecured debt ratings on Boardwalk Pipelines, LP to BBB from BBB- and rated its planned senior unsecured notes BBB.

The agency also upgraded long-term IDR and senior unsecured debt ratings for each of its two pipeline subsidiaries, Gulf South Pipeline Co., LLC and Texas Gas Transmission, LLC have been upgraded to BBB from BBB-.

“Fitch expects 2021 leverage to be about 4x, driven by contract replacement activity, and higher natural gas and liquids volumes in 2021, supported by stronger commodity prices and a return of activity after the coronavirus. This is stronger than Fitch's previous expectation of leverage around 4.5x in 2021, Fitch said in a press release.

Boardwalk plans to use the proceeds to pay down the outstanding $300 million of 4% notes due 2022 at Gulf South. The remainder amounts, if any, will be used for general corporate purposes, which may include, among other things, growth capital expenditures, and repayment of other future maturities of long-term debt.

The outlook is stable.

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