S&P views Prairie Acquiror negatively

S&P said it revised its outlook for Prairie Acquiror LP to negative from stable and affirmed its B+ issuer rating. The agency also affirmed the issue-level ratings on the senior unsecured notes and term loan at BB- and B, respectively. The 2 recovery rating on the notes and the 5 rating on the term loan are also unchanged.

“We expect Prairie Acquiror LP to pursue development of the Trailblazer CO2 (TPCo2) project. The total cost is expected to be at least $1 billion, potentially higher depending on its final scope. We forecast that S&P Global Ratings-adjusted leverage at Prairie will be above 7.5x for about a year during the construction of TPCo2 as we believe a portion will be funded by project-level debt,” S&P said in a press release.

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