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.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.