Fitch affirms Citgo

Fitch Ratings said it has affirmed Citgo Petroleum Corp.'s issuer default rating and outstanding debt ratings as follows: issuer default rating at BB-; $1.15 billion senior secured revolving credit facility maturing in 2010 at BBB-; $700 million secured term-loan maturing in 2012 at BBB-; $515 million secured term-loan maturing in 2012 at BBB-; and fixed-rate industrial revenue bonds at BBB-.

The agency said that ratings positives include the competitiveness of Citgo's three heavy-conversion capacity refineries, which continue to support the company's secured facilities.

Other factors include crude oil supply agreements from parent PDVSA and strong covenant projections for secured lenders, including: a debt-to-capitalization maximum of 55%; an interest coverage minimum of 3.0x; and change-in-control provisions, the agency noted.

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