Moody’s assigns GIP Pilot Ba3

Moody's Investors Service said it assigned first-time ratings to GIP Pilot Acquisition Partners, LP, including a Ba3 corporate family rating, a Ba3-PD probability of default rating and a Ba3 rating to its planned $1.3 billion senior secured debt offering. The company plans to secure a $200 million revolver and a $1.1 billion term loan. The outlook is stable.

GIP Pilot will use the debt proceeds and a $2.9 billion equity contribution from its owner, unrated Global Infrastructure Partners, to buy a 40% interest in the Columbia Pipeline Holding Co., LLC. CPHC, through its wholly owned subsidiary Columbia Pipeline Operating Co., LLC owns more than 15,000 miles of FERC-regulated natural gas pipelines extending from New York state to the Gulf of Mexico and more than 270Bcf of integrated working gas storage.

On July 24, GIP announced the purchase of a 40% non-operating interest in what is now CPHC for $3.9 billion in cash from TC Energy Corp.

"GIP Pilot's Ba3 credit rating reflects the low business risk profile of the underlying operating assets held by Columbia Pipelines Operating Co., LLC (CPOC Baa1 stable) offset by its minority 40% share and non-operating ownership interest in the pipelines," said Gavin MacFarlane, a Moody’s vice president and senior credit officer, in a press release.

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