Moody's: CST Brands notes Ba3

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to CST Brands, Inc.

Additionally, Moody's assigned a Ba3 rating to the company's proposed $550 million senior unsecured notes.

Moody's also assigned CST a speculative grade liquidity rating of SGL-1.

The outlook is stable.

The proceeds of the financing will be used to fund CST's spin-off from Valero Energy Corp.

"Although CST lacks an established track record operating as an independent company, its pro forma debt protection metrics are relatively good and we expect them to remain appropriate for its Ba2 rating category in the near to medium term," Moody's senior analyst Mickey Chadha said in a news release.

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