Fitch assigns M6 B+, loan BB+

Fitch Ratings said it assigned a first-time long-term issuer default rating of B+ to M6 ETX Holdings II MidCo LLC (M6 Midstream) and BB+/RR1 ratings to the company's planned senior secured term loan.

“M6's ratings are based on its strong gathering, processing, treating and transportation footprint in the East Texas Haynesville Shale, which includes a single-basin focus and some segment/asset diversity, and its relatively small size, as measured by annual EBITDA. M6 has a predominantly fixed-fee for service business model with some long-term revenue-assurance contracts and strong credit quality counterparties and low relative leverage,” “While no explicit rating linkage exists, Fitch views M6's relationship with its main sponsor, EnCap Flatrock, as supportive of its credit quality,” the agency said in a press release.

Additionally, Fitch noted M6’s EBITDA is under $300 million, which is usually considers consistent with a B category issuer rating.

The outlook is stable.

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