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Recovery Report: Chesapeake Midstream Partners L.P.'s Recovery Rating Profile Jan 12

  • ID: 2041296
  • January 2012
  • Standard & Poors
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We are updating our recovery analysis on U.S. midstream company Chesapeake Midstream Partners L.P. (CHKM) to reflect the recent upsizing of its revolver to $1 billion from $800 million, and the recent issuance of $750 million of senior unsecured notes. CHKM is highly dependent on the revenue it receives from its contracts with Chesapeake Energy (BB+/Stable/--), and Chesapeake Energy's operations are highly dependent on CHKM's assets for usage. Our simulated default scenario for CHKM contemplates severe distress at Chesapeake Energy. CHKM and Chesapeake Energy have long-term fixed-fee contracts, which include minimum volume usage commitments from Chesapeake Energy that account for a high proportion of CHKM's revenue. Our default scenario contemplates distress at Chesapeake Energy resulting from an extended period of...

Companies mentioned in this report are: Chesapeake Midstream Partners L.P.

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: Full Analysis

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Chesapeake Midstream Partners L.P.

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