Moody’s trims Gemini HDPE loan to Ba3

Moody's Investors Service said it downgraded the rating on Gemini HDPE, LLC's $368 million senior secured term loan to Ba3 from Ba2. The outlook was changed to negative from stable.

“Gemini HDPE's rating downgrade to Ba3 reflects the credit deterioration of its joint venture owner/offtakers, including Sasol Financing (Pty)(NR), a direct subsidiary of Sasol Ltd. (Sasol, Ba2 RUR-Down) and Ineos Group Holdings SA's (INEOS: Ba3 negative). Offtaker credit quality is a key driver of Gemini's credit assessment because Ineos and Sasol Financing wrap operational and market risk under its tolling agreements on a several but not joint basis,” the agency said in a press release.

The negative outlook mirrors the possibility of more deterioration in Gemini’s offtaker/owner credit quality, Moody’s said.

© 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.