S&P rates Calumet notes B

Standard & Poor's said it affirmed the B corporate credit rating on Calumet Specialty Products Partners LP, and assigned a senior unsecured rating of B to the proposed $450 million notes with a recovery rating of 4 to this debt, indicating an expectation of 30% to 50% in a default.

The outlook is stable.

The ratings reflect the weak near-term outlook for the highly volatile refining and marketing industry, elevated debt leverage, small scale of operations and limited discretionary cash flows given its master limited partnership structure, S&P said.

The ratings also reflect expectations for continued favorable margins on specialty products, improving liquidity and modest near-term capital spending needs, the agency said.

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