Moody's gives Reliance notes Ba2

Moody's Investors Service said it has assigned a provisional Ba2 rating to $250 million of debt to be issued by Reliance Intermediate Holdings LP.

The outlook is stable.

The agency said that about C$103 million will be invested in the company's wholly owned subsidiary, Reliance LP, in the form of additional equity, with the balance used to fund transaction costs and a distribution to Relian Intermediate's owners.

The provisional Ba2 rating reflects the subordinated nature of the debt issued by Reliance Intermediate since the servicing of that debt relies on distributions made by Reliance LP (senior secured debt rated Baa3), the agency added.

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