S&P puts Alon on watch

Standard & Poor's said it placed the B+ corporate credit rating on Alon USA Energy Inc. on CreditWatch with negative implications.

According to S&P, the watch reflects the potential reduction in liquidity and cash flows following the explosion and fire at Alon's Big Spring, Texas, refinery, which accounted for more than 70% of operating income from refining operations through the nine months ended Sept. 30.

The agency said it is concerned that if the extent of the damage and loss to this refinery are more severe than Alon's current estimates, liquidity could weaken.

The incident comes at a time of weaker refining margins in the West Coast region, where Alon's other refineries operate, the agency noted.

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