December 4, 2012 / 4:20 PM / 5 years ago

TEXT-S&P: Targa Resources Partners ratings unchanged after note add-on

Dec 4 - Standard & Poor's Ratings Services said today that it left its 'BB'
issue-level rating and its '4' recovery rating unchanged on Targa Resources
Partners L.P.'s (BB/Stable/--) existing $400 million 5.25% notes due
2023 after the partnership announced it proposed to make an add-on of up to $200
million to the issue. The '4' recovery rating indicates our expectation of
average (30% to 50%) recovery if a payment default occurs. Targa intends to use
the net proceeds for general partnership purposes, which may include working
capital and funding its recent acquisition of crude oil and natural gas
gathering and processing assets in the Williston Basin. We expect pro forma debt
to EBITDA to be in the low-4x area in the next several quarters, before
declining to less than 4x over the next 12 months.

Houston-based Targa is a midstream energy partnership that specializes in 
gathering and processing natural gas, and fractionating and distributing 
natural gas liquids. Our corporate credit rating on Targa is 'BB', and the 
outlook is stable. (For the corporate credit rating rationale, see our summary 
analysis published Oct. 22, 2012 and bulletin published Nov. 15, 2012.)

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