Research Update: DCP Midstream Operating L.P.'s Senior Unsecured Notes Are Rated 'BBB-'; Outlook Stable Mar 13
- Language: English
- Published: March 2013
Parent DCP Midstream LLC favorably influences DCP Midstream Partners' rating; High percentage of fee-based revenue; Good geographic diversity; and Multi-year hedging policy partially mitigates commodity risk. Commodity price risk in natural gas services segment; Limited asset diversity; and High leverage. We base the rating on midstream energy company DCP Midstream Partners LP (Partners) on the strong linkage to its higher-rated parent DCP Midstream LLC (Midstream; BBB/Stable/A-2). Partners is a Denver-based master limited partnership (MLP) and its key credit factors include its strategic importance to its parent, the significant influence Midstream has over Partners' operations, a sizeable portion of fee-based revenues, and good geographic diversity. Commodity risk in the MLP's natural gas services business, limited asset diversity, and an aggressive financial...
Companies mentioned in this report are: DCP Midstream Partners L.P.,DCP Midstream LLC
Action: New Rating
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Research Type: Full Analysis
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DCP Midstream Partners L.P.,DCP Midstream LLC