S&P cuts Coffeyville to distressed

Standard & Poor's said it lowered its corporate credit rating on Coffeyville Resources LLC to CCC+ from B and the rating on the company's $1.07 billion senior secured facilities to B- from B+ with a 2 recovery rating indicating 70% to 90% recovery of principal. The agency downgraded the senior secured local-currency rating to B- from B+.

The ratings remain on CreditWatch with negative implications due to an uncertain credit market and potential operating issues, S&P said.

The CCC+ rating reflects near-term liquidity needs, potential for environmental and civil liability arising from an oil spill, high debt levels following the 2006 recapitalization and volatile commodity prices, the agency said.

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