Moody's: Kaneb notes developing

Moody's Investors Service said it confirmed with a developing outlook the Ba1 rating of Kaneb Pipe Line Operating Partnership LP's $250 million senior unsecured notes due 2012.

The action reflects Moody's expectation that the company's merger with Valero LP will close by July 1.

The agency said it had previously indicated that it would most likely upgrade the company's senior unsecured rating to Baa3 with a negative outlook once the transaction closed, however, on April 25, the agency placed Valero's Baa3 debt rating under review for possible downgrade.

Moody's added that confirmation of Valero Energy's ratings would most likely result in an upgrade of Kaneb's rating to Baa3.

© 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.