S&P maintains Citgo review

S&P said its B- corporate credit ratings on Citgo Petroleum Corp. and Citgo Holding Inc. are unchanged, and the ratings remain on CreditWatch where they were placed with developing implications on Dec. 7.

The agency said the B+ issue-level rating on Citgo Petroleum's senior secured debt is also unchanged and the recovery rating remains 1, which indicates the likelihood of very high (90%-100%; rounded estimate: 95%) recovery following a default.

Finally, the B- issue-level rating on Citgo Holding's outstanding senior secured debt due 2018 and 2020 is unchanged. The recovery rating is 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery.

The issue-level ratings remain on CreditWatch with developing implications.

Following non-payment of interest on several series of bonds, S&P lowered the corporate credit rating of parent company Petroleos de Venezuela SA (PDVSA) to SD.

The agency said it assesses Citgo as an insulated subsidiary, and it believes the company would not be dragged into a bankruptcy of PDVSA, should it occur.

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