Moody’s rates Valero notes Baa2

Moody’s Investors Service said it assigned a Baa2 rating to Valero Energy Corp.’s planned senior unsecured notes. The agency also affirmed the Baa2 ratings of the company and its subsidiaries.

Concurrently, Moody’s changed the outlook to negative from stable.

“The change of outlook to negative reflects Moody’s expectation that the company will manage a higher level of leverage in the next 12-18 months. In 2020, Valero raised additional debt to support its liquidity and fund operations and dividends amid a rapid decline in earnings during the economic lockdowns. The negative outlook recognizes the uncertain timing of expected recovery in the profitability of refining operations and reduction in leverage in 2021,” the agency said in a press release.

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