S&P upgrades Gibson Energy

S&P said it raised its long-term issuer credit and senior unsecured debt ratings on Gibson Energy ULC to BB+ from BB. The outlook is stable.

The 3 recovery rating on the notes is unchanged, and indicates that lenders can expect meaningful (50%-70%; rounded estimate capped at 65%) recovery in a default scenario.

“The stable outlook reflects S&P Global Ratings' view that Gibson will continue to expand the more stable infrastructure business segment and increase stable take-or-pay and fee-based cash flows to about 75% as it secures more contracts and develops this business,” S&P said in a news release.

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