S&P gives BBB+ to Genesis Energy notes

S&P said it assigned its BBB+ long-term issue credit rating to Genesis Energy Ltd.'s (BBB+/stable/NR) proposed issuance of NZ$100 million in unsecured, unsubordinated, fixed-rate medium-term notes.

The notes will be issued with a tenor of eight years and rank pari passu with all of Genesis Energy's existing senior unsecured debt.

Proceeds will be used for general corporate purposes, including repayment of current outstanding balance under the company's banking facilities.

S&P said the rating reflects the strong market position of Genesis Energy as New Zealand's largest energy retailer with a modest generation position. The agency expects Genesis Energy will continue to manage appropriately its exposure to volatile electricity and oil prices through its owned-generation portfolio and adequate hedging strategy.

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