DBRS Morningstar Assigns Rating of BBB (low) with Stable Trend to Reliance LP’s $430 Million 2.68% Senior Secured Notes Due December 1, 2027

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Reliance LP’s (Reliance or the Company) $430 million 2.68% Senior Secured Notes (the Notes) maturing December 1, 2027. The Notes settled on August 20, 2020. The rating assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Notes will be senior secured obligations of Reliance and will rank pari passu in right of payment with all other secured obligations. The Company will use the net proceeds from the sale of the Notes to repay in full all existing indebtedness under its Senior Secured Notes due in September 2020, with any excess proceeds thereafter being used for general corporate purposes and/or to repay the senior secured notes due 2023 of Reliance Intermediate Holdings LP (rated BB with a Stable trend by DBRS Morningstar) through the payment of a dividend or other distribution to Reliance Intermediate Holdings LP.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Companies in the Services Industry (February 5, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry visit www.dbrsmorningstar.com or contact us at [email protected].

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