Press Release|Funds

KBRA Affirms the Ratings on the Outstanding Senior Notes and Outstanding Mandatory Redeemable Preferred Shares Issued by Three TortoiseEcofin Closed End Funds

15 Dec 2023   |   New York


KBRA affirms the 'AAA' rating to the Senior Notes and affirms the 'A+' rating assigned to the Mandatory Redeemable Preferred Shares ("MRPS") issued by three closed-end funds, (i) Tortoise Energy Infrastructure Corp. (NYSE: TYG), (ii) Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) and (iii) Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP), (the "Funds") managed by Tortoise Capital Advisors ("Tortoise"). Additionally, KBRA withdraws the Series G MRPS for NTG and the Series D MRPS for TYG following the pay-off in full at maturity.

The Funds are registered under the Investment Company Act of 1940 (the “'40 Act”) and are closed-end investment funds, advised by Tortoise Capital Advisors, L.L.C. TYG, NTG and TTP had their Initial Public Offerings in February 2004, July 2010 and October 2011, respectively. The Funds generally invest in Natural Gas Infrastructure, Renewables & Power Infrastructure, and Liquids Infrastructure. Moreover, each of the Funds are structured as a Regulated Investment Company ("RIC").

Senior Notes Ratings

  • Tortoise Energy Infrastructure Corp. (Series JJ, T, L, AA, NN, KK, OO, PP, and QQ)
  • Tortoise Midstream Energy Fund,Inc. (Series Q, R, and S)
  • Tortoise Pipeline & Energy Fund, Inc. (Series H)

Mandatory Redeemable Preferred Shares Ratings

  • Tortoise Energy Infrastructure Corp. (Series E and F)
  • Tortoise Midstream Energy Fund,Inc. (Series E, F, and H)
  • Tortoise Pipeline & Energy Fund, Inc. (Series B)

Key Credit Considerations

The ratings for the Senior Notes and MRPS are primarily driven by the Funds’ historically strong asset coverage ratios and liquidity, coupled with Tortoise’s management experience. The Funds have historically demonstrated their ability to remain in compliance with the '40 Act requirements. Since inception, the senior debt asset coverage has averaged above 400% for the Funds, above the 300% senior debt threshold, and total leverage asset coverage has averaged over 300% for the Funds, above the 200% total leverage threshold. In KBRA’s view, Tortoise's ability to withstand various market dislocations demonstrates its strength and the resiliency of its capital structure.

Rating Sensitivities

A deterioration in asset coverage levels below '40 Act requirements and the Fund manager’s inability to liquidate assets and demonstrate intention to cure within the 30-day time-period could result in a negative rating change. Conversely, a trend of stable asset performance coupled with improvements to asset coverage could result in positive rating changes.

To access rating and relevant documents, click here.

Click here to view the reports.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002894

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