Moody’s lifts Downstream Development

Moody's Investors Service said it upgraded Downstream Development Authority's (DDA) corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

The B2 rating on the $270 million senior secured notes due 2023 was affirmed.

The outlook is stable.

Moody’s said the action follows the closing of Downstream’s new $40 million term loan (unrated) and new $270 million senior secured notes due 2023.

Proceeds were used to refinance the authority’s $32 million first-lien credit facility and $265 million senior secured notes due 2019.

Although $42 million of the senior secured notes have not been tendered, Downstream plans to redeem the remaining notes outstanding on March 3, 2018. Once these notes have been redeemed, the agency said it will withdraw the rating on these notes.

This completes the review for upgrade that began on Jan. 18.

"The upgrade reflects the meaningful extension of DDA's debt maturity profile as a result of the refinancing with the company's earliest debt maturity being four years from now," Moody’s senior vice president Keith Foley said in a news release.

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