Moody’s gives Genesis notes B1

Moody’s Investors Service said it assigned a B1 rating to Genesis Energy LP’s proposed senior unsecured notes due 2028. Its existing ratings are unchanged, including the Ba3 corporate family rating, Ba3-PD probability of default rating, B1 ratings on the existing senior unsecured notes and the SGL-3 speculative grade liquidity rating. The outlook is stable.

“Genesis Energy’s proposed notes issuance will refinance existing debt without impacting the company’s leverage,” James Wilkins, Moody’s vice president, in a press release.

The proposed senior unsecured notes, which are rated B1, rank pari passu with and are rated the same as Genesis’ existing senior unsecured notes. The senior unsecured rating is one notch below the Ba3 CFR and reflects the lower priority ranking compared to obligations under the company’s $1.7 billion senior secured revolver (unrated) that has a first lien on all assets. The large size of the secured claims relative to the unsecured notes results in the notes being rated a notch below the Ba3 CFR.

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