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Crestwood Ratings Downgraded

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On May 12, 2016, S&P Global Ratings updated its ratings on Crestwood Equity Partners LP, including lowering the corporate credit rating on Crestwood Holdings LLC to CCC+ from B- and its secured debt to CCC+ from B-. “We view Crestwood’s recent 56% quarterly cash distribution cut, the strategic joint venture with Consolidated Edison Inc., and the expected pay-down of debt positively for credit,” said S&P Global Ratings analyst Mike Llanos. “However, in our view, Crestwood will now be more reliant on riskier cash flows exposed to volumetric risk. In our view, the partnership has sold its stable cash flow producing northeast natural gas storage and pipeline assets into the joint venture with Con Edison for $975 million and will use the proceeds to improve its liquidity position and balance sheet.” Read more on distressed companies.