Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Getty Petroleum > News item |
Moody's rates Getty Petroleum loan
Moody's Investors Service said it assigned a B1 rating to the proposed $345 million secured bank loan of Getty Petroleum Marketing Inc.
Ratings assigned include the $75 million secured revolving credit facility due 2008 at B1, $270 million secured term loan due 2010 at B1, senior implied rating at B1, and the unsecured issuer rating at B2.
The outlook is stable.
Getty will operate or license about 2,100 gas stations in the Northeastern United States under the "Getty," "Lukoil," and "Mobil" trade names. Together with $50 million in incremental equity investment from Getty's owner, the new capital will fund the purchase (including post-purchase working capital) of 779 Mobil gas stations in New Jersey and Pennsylvania from ConocoPhillips (senior unsecured rating of A3).
Moody's said the ratings consider the company's highly leveraged financial condition, the high level of competition among gasoline retailers, and the very thin gross margins inherent in gasoline distribution.
Supporting the ratings are the leading gasoline retailing market share of Getty in the Northeastern United States, relatively inelastic consumer demand for gasoline, and the potential purchasing efficiencies as Getty becomes more integrated with Lukoil.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.