Moody's assigns Gibson Energy notes B1

Moody's Investors Service said it assigned a first time B1 (LGD-3, 45%) senior secured rating to Gibson Energy ULC's proposed $545 million first-lien notes issue.

Moody's said it also assigned a B1 corporate family rating and B1 probability of default rating to Gibson Energy Holding ULC.

The outlook is stable.

According to the agency, Gibson's B1 corporate family rating reflects its substantial leverage, which will likely increase to cover growth capex and ongoing acquisition activity, weak interest coverage, and the company's small size and concentration of operations in one primary geographic region in Western Canada.

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