Research Update: Gibson Energy ULC Proposed US$200M Senior Unsecured Notes Rated 'B-'; Corporate Credit Rating Lowered To 'B+' From 'BB-' Jan 10
Standard & Poors, January 2010
Abstract
We are assigning our 'B-' issue-level rating to Calgary, Alta.-based Gibson Energy ULC subsidiary GEP Midstream Finance Corp.'s proposed US$200 million senior unsecured notes due 2018, with a recovery rating of '6'. We are lowering our long-term corporate credit rating on both Gibson and GEP and our issue-level rating on their first-lien senior secured notes to 'B+' from 'BB-'. The downgrade reflects our view of more aggressive financial policies than we initially expected. In our view, the ratings on Gibson reflect the company's weak financial ratios and constrained financial flexibility, the businesses' capital-intensive nature, and exposure to somewhat volatile drilling activity and energy markets in Alberta. On Jan. 12, 2010, Standard & Poor's Ratings Services assigned its 'B-' issue-level rating...
Companies mentioned in this report are: Gibson Energy ULC,GEP Midstream Finance Corp
Action: Downgraded
Action: New Rating
Action: Outlook: Stable
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
Gibson Energy ULC,GEP Midstream Finance Corp
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