S&P lifts Gibson Energy from junk

S&P said it upgraded Gibson Energy ULC and its senior unsecured debt ratings to BBB- from BB+ on completing the sale of noncore assets.

“We believe that, with the divestiture of noncore assets now complete, the company is well positioned to execute on its commitment to expand the Infrastructure segment that provides cash flow stability,” S&P said in a press release.

The outlook is stable.

The agency said it sees Gibson continuing to expand its more stable infrastructure segment and increase its take-or-pay and fee-based cash flows to 70%-80% as it secures contracts and grows its operations.

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