Fitch ups Citgo to positive

Fitch Ratings said it affirmed Citgo Petroleum Corp.'s issuer default rating at B+, senior secured credit facility at BB+, secured term loan at BB+ and fixed-rate industrial revenue bonds at BB+.

Fitch revised the outlook on Citgo to positive from stable.

The ratings consider rapid improvements in the company's financial performance, prompted by a backdrop of improving global refining fundamentals; Citgo's access to heavily discounted WTI-linked crudes; its recent de-leveraging; and completion of Ultra Low Sulfur Diesel construction at Lemont and Corpus Christi, which was the last major piece of near-term mandatory capex at the company and should clear the way for improved free cash flow generation, the agency said.

Citgo's ratings remain constrained by their strong linkage to parent Petroleos de Venezuela SA (B+/stable), the agency added.

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