Moody's rates TransMontaigne notes B2

Moody's Investors Service said it assigned first-time ratings to TransMontaigne Partners, LP, including a Ba3 corporate family rating, Ba3-PD probability of default rating and B2 (LGD 5) rating on its proposed senior unsecured notes.

The agency also said it assigned an SGL-3 speculative grade liquidity rating.

The outlook is stable.

The proceeds will be used to partially repay revolver borrowings.

TransMontaigne's notes issuance will improve the company's liquidity and return revolver borrowings back to the levels drawn prior to the December 2017 acquisition of two refined products and crude oil terminals on the west coast for $275 million, Moody's said.

The ratings reflect the stable nature of its cash flows, large proportion of fee-based revenues under take-or-pay contracts and diversity of operations in multiple U.S. regions, the agency said.

The company enjoys strong market positions in niche markets that can have limited competition and significant barriers to entry, Moody's said.

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