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Bulletin: Chesapeake Midstream Partners Ratings Not Affected Re: Acquisition Announcement Dec 11
Standard & Poors, Dec 2011
Abstract
NEW YORK (Standard & Poor's) Dec. 28, 2011--Standard & Poor's Ratings Services said today that its ratings and outlook on Chesapeake Midstream Partners L.P. (CHKM; BB+/Stable/--) are not affected after the partnership announced that it has agreed to acquire Marcellus Shale midstream assets from a wholly owned subsidiary of Chesapeake Energy Corp. (BB+/Stable/--) for $865 million. The Marcellus assets have 15-year, fixed-fee contracts with several exploration and production companies with a weighted-average rating of 'BBB'. Chesapeake Energy's commitment to generate minimum EBITDA levels in 2012 and 2013 for CHKM's benefit provides clear cash flow visibility during the next 24 months and in our view will enable the partnership to maintain pro forma leverage at or below 2.5x in 2012. Our...
Companies mentioned in this report are: Chesapeake Midstream Partners L.P.,Chesapeake Energy Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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