Fitch Rates DCP Midstream's $250MM Notes 'BBB+'; Outlook Stable

Fitch Ratings has assigned a 'BBB+' rating to DCP Midstream, LLC's (DCPM) $250 million new issue of 9.70% senior unsecured notes due December 2013. The proceeds will be used for general corporate purposes, which may include a partial repayment of its 364-day credit agreement entered into in April 2008. As of Sept. 30, 2008, DCPM had $300 million outstanding under the 364-day credit agreement. The Rating Outlook is Stable.

DCPM's Issuer Default Rating (IDR) is 'BBB+'. Fitch upgraded DCPM's ratings in September based on the continued strength of the company's credit metrics compared to its peer group and to Fitch's 'BBB' parameters. Additionally, the company's continued strong financial performance and conservative capital structure, in combination with reduced economic sensitivity to commodity pricing, helps to mitigate the impact of commodity price changes on the company's credit risk profile. The credit is further enhanced by the scale, scope and geographic diversity of the company's assets.

The Stable Outlook reflects Fitch's expectation that while commodity prices have weakened from their historic highs, DCPM's credit ratios should remain in line with its peer group.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Url zum Artikel: http://www.ad-hoc-news.de/CorporateNews/19875585/rss