S&P stabilizes Phillips 66 view

S&P said it revised Phillips 66’s outlook to stable from negative and affirmed BBB+ ratings on the company and its debt.

“The company's diversified business model helped offset weakness in its refining segment in 2020 and 2021. While the refining segment was under pressure for most of 2020 and the first half of 2021, the company's other segments helped offset weakness. The chemicals segment performed very well in 2021 because of higher demand and pricing. In addition, the company's midstream and marketing and specialties segments have been stable this year. The company's diversified business model supports the revision of the company's outlook to stable,” the agency said in a press release.

S&P said it projects adjusted debt to EBITDA will improve to about 2x in 2022 from about 3x in 2021, but warned cash flow could be volatile in the company's refining segment.

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