Moody's rates Phillips 66 notes A3

Moody's Investors Service said it assigned A3 senior unsecured rating to Phillips 66's proposed offerings of two tranches of senior notes.

Proceeds will be used for general corporate purposes. Phillips 66's ratings, including the A3 long-term issuer and senior unsecured ratings, and the stable outlook are unchanged, the agency said.

"Phillips 66 has excellent liquidity and the issuance of term loan debt and notes will increase its cash balance, which we expect will fund negative free cash flow in 2020," said James Wilkins, a Moody's vice president and senior analyst, in a press release. "The increase in long-term debt from the notes issuance will be offset by repaying $500 million of debt maturing in April 2020 and another $500 million maturing in February 2021."

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