S&P rates Rubis Terminal, notes B+

S&P said it assigned a B+ rating to Rubis Terminal SA, and its proposed senior secured €410 million of bonds.

“The company’s high forecast debt and ambitious expansion plans underpin our assessment of a highly leveraged capital structure, but the free operating cash flow (FOCF) generation of the well-invested asset base is a supporting factor,” S&P said in a press release.

“The current market contango structure, due to petroleum fuel consumption declines and industrial supply chain disruption has led to higher demand for storage of petroleum, chemicals and other fuels. We expect Rubis Terminal to benefit from higher utilization rates at its terminals versus 2019, while storage revenue is relatively protected by the take-or-pay contracted nature of most of the activities,” S&P said.

The outlook is stable.

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