November 19, 2012 / 3:30 PM / 5 years ago

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

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.)

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


DCP Midstream Operating L.P.
New Rating
$500 mil sr unsecd notes due 2018       BBB-
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below