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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Crestwood Holdings LLC
Global Credit Research - 10 Aug 2020
New York, August 10, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Crestwood Holdings LLC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Crestwood Holdings LLC's (Holdings) Caa1 Corporate Family Rating reflects the basin diversification, a contract profile with a high portion of fixed fee and take-or-pay contracts and good distribution coverage of Crestwood Equity Partners LP (Crestwood, Ba3), from which Holdings receives distributions. Holdings' rating is constrained by its elevated restructuring risk, poor prospects for recovery, the potential for a covenant breach in the near term and eroding collateral coverage of its term loan with the deterioration in Crestwood's unit price. Moody's expects Holdings' stand-alone financial profile to worsen through the first half of 2021, due to Moody's expectation that Crestwood's credit metrics will weaken over the next two to three quarters.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Midstream Energy published in December 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
John Thieroff Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Steven Wood MD - Corporate Finance Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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