S&P: Phillips 66 notes BBB

Standard & Poor's said it assigned a BBB rating to Phillips 66's proposed senior unsecured notes.

The proceeds will be used in part to fund a distribution to Phillips 66's parent company, ConocoPhillips, which is planning to spin off Phillips 66 through a distribution of stock to ConocoPhillips' shareholders.

ConocoPhillips expects to complete the spinoff in the second quarter of this year, S&P said.

The rating assumes the spinoff will occur in accordance with the plans disclosed by ConocoPhillips, the agency said.

The rating also considers the company's satisfactory risk profile and intermediate financial risk profile, S&P said, as well as its position as a large oil refining company with extensive midstream and chemical operations.

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