Moody’s upgrades Citgo, debt

Moody's Investors Service said it upgraded Citgo Petroleum Corp.’s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD and senior secured ratings on term loans and global notes and IRBs to B3 (LGD3) from Caa1 (LGD4).

The rating on Citgo Petroleum's senior secured revolving credit facility was upgraded to B2 (LGD3) from B3 (LGD4).

In addition, the agency upgraded Citgo Holding, Inc.'s corporate family rating to Caa1 from Caa2 and senior secured ratings on global notes Caa1 (LGD4) from Caa2 (LGD4).

In addition, Moody's withdrew Citgo Holding's senior secured term loan B due 2018 as it is no longer outstanding.

The outlooks were changed to stable from negative.

“Although Moody's downgraded the ratings on Petroleos de Venezuela, SA (PDVSA) to C from Ca on March 14, 2018, the upgrades on the ratings of Citgo Petroleum and Citgo Holding were based on Moody's view that current ratings better reflect the credit risk that derives from continued deterioration in the business and financial profile of their ultimate parent company, PDVSA,” the agency said in a news release.

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