On December 14, 2020, Moody's Investors Service downgraded its Corporate Family Rating Rockies Express Pipeline LLC to Ba2 from Ba1, its probability of default rating to Ba2-PD from Ba1-PD and its unsecured notes rating to Ba2 from Ba1. "REX's ratings downgrade reflects the weakened counterparty credit strength of its customer base and the high financial leverage and fundamental challenges faced by its 75% owner, Prairie ECI Acquiror LP," comments Sreedhar Kona, Moody's senior analyst.

The downgrade is driven by the sustained overall deterioration of its counterparty average credit profile. The bankruptcy filings by the Company’s west-to-east counterparty Ultra Resources Corp and its east-to-west counterparty Gulfport Energy Corporation put some portion of REX's cash flow at risk, according to the ratings agency.

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