DBRS: Parkland Fuel notes BB

DBRS said it has assigned an issuer rating of BB to Parkland Fuel Corp. and a provisional rating of BB, with a recovery rating of RR4, to Parkland's proposed issuance of senior unsecured notes, both with stable trends.

The agency said that Parkland's ratings reflect the high level of competition in and the commoditized nature of the greatly fragmented fuel distribution industry; the industry's exposure to macroeconomic factors, such as economic growth and input cost volatility; and risks related to environmental liability and ambitious growth plans.

Fitch said that the ratings are supported by its market position as the largest independent fuel distributor and marketer in Canada, its efficient operations and its diversified customer and supplier base.

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