S&P rates Citgo loan, notes B-

Standard & Poor’s said it affirmed the B- corporate credit rating on Citgo Petroleum Corp. based on plans by its ultimate parent, Petroleos De Venezuela SA, to arrange a dividend recapitalization of its U.S. operations.

The outlook is stable.

The agency also said it affirmed the B+ rating on Citgo Petroleum’s senior secured debt and the recovery rating remains at 1.

S&P also said it assigned a B- corporate credit rating to Citgo Holding Inc., a newly created U.S. company that will own Petroleos De Venezuela’s interests in Citgo Petroleum.

The agency also said it lowered the stand-alone credit profile on Citgo Petroleum to B+ from BB and assigned a B+ stand-alone credit profile to Citgo Holding.

S&P also said it assigned a B- rating Citgo Holding’s proposed $2.5 billion senior secured debt due 2020. The recovery rating is 3, reflecting 50% to 70% expected default recovery.

This debt consists of a $1 billion term loan B due 2020 and $1.5 billion notes due 2020.

The ratings on Citgo Petroleum are constrained by the ratings on Petroleos De Venezuela, the agency said.

The ratings also reflect the sovereign ratings on Venezuela, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.