RatingsDirect – S&P Global Ratings
- Significant debt paydown in 2017 has resulted in improved financial ratio projections at EMG Utica LLC, with debt to EBITDA now expected to be in the 1.5x–2x range over the next few years. We also have increased confidence that dividend coverage ratios provide sufficient headroom to shield the company during times of moderate stress.
- We are affirming the ‘B’ corporate credit rating on EMG Utica LLC. The outlook remains stable.
- At the same time, we are revising the recovery rating on the company’s $325 million senior secured term loan B to ‘2’ from ‘3’ and raising the issue-level rating on the debt to ‘B+’ from ‘B’.
- The stable outlook reflects our belief that the company will have adequate liquidity to meet its financial obligations over the next 12 months with interest coverage in excess of 10x and a debt-to-EBITDA ratio in the 1.5x-2x area.