TEXT - S&P rates DCP Midstream Operating LP proposed notes

Mon Nov 19, 2012 10:29am EST

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Nov 19 - Standard & Poor's Ratings Services said today that it assigned its
'BBB-' issue-level rating to DCP Midstream Operating L.P.'s proposed $500
million senior unsecured notes due 2018. Parent DCP Midstream Partners L.P.
(Partners; BBB-/Stable/--) guarantees the debt. 
The partnership intends to use net proceeds from the notes to repay all of the 
outstanding borrowings under the $140 million and the $343.5 million term 
loans, which it used to partially fund the cash portions of the Mont Belvieu 
fractionators and the 33.33% interest in the Eagle Ford system asset 
drop-downs from parent DCP Midstream LLC (BBB/Stable/A-2). As of Sept. 30, 
2012, Partners had total debt of about $1.04 billion.

Denver-based Partners is a gatherer, processor, and transporter of natural gas 
and natural gas liquids, and a wholesale distributor of propane. For 2013, we 
forecast that Partners will achieve a total debt to EBITDA ratio between 3.5x 
and 3.75x. (For the corporate credit rating rationale, see our summary 
analysis on Partners published June 25, 2012 on RatingsDirect.)

RELATED CRITERIA AND RESEARCH
Key Credit Factors: Criteria For Rating The Global Midstream Energy Industry, 
April 18, 2012

RATINGS LIST

DCP Midstream Operating L.P.
New Rating
$500 mil sr unsecd notes due 2018       BBB-
FILED UNDER:
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