S&P Global Ratings awarded investment-grade issuer credit and senior unsecured ratings to SemGroup Corp. and subsidiary HFOTCO LLC following a merger with Energy Transfer LP.
The rating agency lifted SemGroup out of speculative territory Dec. 9, upgrading its corporate-level credit to BBB- from B+ and raising the company's senior secured rating to BBB- from BB. HFOTCO, or the Houston Fuel Oil Terminal Co., saw its corporate-level credit and senior unsecured ratings rise to BBB- from BB-.
Energy Transfer, which completed its $5 billion acquisition of SemGroup on Dec. 5, specifically wanted to own the terminal on the Houston Ship Channel, which has 18.2 million barrels of crude oil storage capacity and is underpinned by take-or-pay contracts.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.