S&P ups Genesis Energy notes, rates new notes BB-

S&P said it affirmed its BB- corporate credit rating on Genesis Energy LP. The outlook is stable.

At the same time, S&P raised its issue-level ratings on all the company's outstanding senior unsecured notes to BB- from B+ and revised the recovery rating on the existing notes to 4 from 5.

At the same time, S&P assigned a BB- issue-level rating and 4 recovery rating to Genesis Energy's proposed $550 million senior unsecured notes. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of default.

“The affirmation stems from our expectation that, while this transaction will add leverage in the near term, based on our calculation, the stable cash flows from the new soda ash business will limit overall cash flow volatility and provide meaningful diversity,” S&P said in a news release.

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