Moody's cuts Genesis Energy

Moody's Investors Service said it downgraded the ratings of Genesis Energy, LP, including its corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and ratings on its senior unsecured notes to B3 from B2.

The SGL-3 speculative grade liquidity rating is unchanged. The outlook is stable.

“The downgrade reflects Genesis Energy’s continued high leverage, still significant growth capital spending and lower interest coverage relative to higher rated peers,” said James Wilkins, Moody's vice president, in a news release.

“The company will continue to generate negative free cash flow in 2023-2024 due to spending on its soda ash and offshore pipeline expansion projects, even after bringing online additional soda ash capacity.”

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