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EPD: JUST upgraded on Friday to a single A- rating by S&P Global....wow.....Enterprise Products Partners L.P. Upgraded To 'A-' From 'BBB+'; Debt Ratings Raised; Outlook Stable Enterprise Products Partners L.P. (EPD) recently changed its financial policy and expects to maintain lower leverage of 2.75x-3.25x over the long term. We now view EPD's financial risk profile as intermediate. Consequently, we raised our issuer credit rating on EPD and issue-level ratings on its senior unsecured debt to 'A-' from 'BBB+'. In addition, we raised the rating on EPD's junior subordinated debt (hybrids) to 'BBB' from 'BBB-'. The 'A-2' short-term rating on EPD is unchanged. The stable outlook reflects our expectation that EPD will maintain a strong competitive position and very strong credit measures. We expect the partnership to maintain adjusted debt to EBITDA of about 3x and distribution coverage of about 1.6x in 2023. Over the long term, we expect EPD to maintain leverage between 2.75x and 3.25x, which is the partnership's stated long-term target. NEW YORK (S&P Global Ratings) March 17, 2023—S&P Global Ratings today took the rating actions listed above. The upgrade reflects our view of EPD's strong credit metrics and even more conservative financial policy. |
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