Moody’s rates Gibson Energy notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Gibson Energy Inc.'s proposed C$300 million senior unsecured notes.

The majority of the proceeds will be used to tender for Gibson's 2020 C$250 million and a portion of the 2021 $550 million senior unsecured notes.

The agency also affirmed Gibson's Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba2 rating on the existing senior unsecured notes.

The speculative grade liquidity rating was lowered to SGL-3 from SGL-2.

The outlook remains stable.

"Gibson's affirmation reflects the improved leverage resulting from the decrease in debt and expected improvement in EBITDA in 2017," Moody's assistant vice president Paresh Chari said in a news release.

"Distribution coverage also improves above one times with the improvement in EBITDA."

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