S&P: Phillips 66 notes BBB+

Standard & Poor’s said it raised the corporate credit rating on Phillips 66 and Phillips 66 Co. to BBB+ from BBB.

The agency also said it affirmed the company’s short-term rating of A-2.

The agency said it assigned a BBB+ rating on Phillips 66’s proposed senior unsecured notes. Phillips 66 Co. will fully and unconditionally guarantee the notes, S&P said.

The outlook is stable.

The proceeds will be used to refinance the company’s $800 million 1.95% senior notes due March 2015 and for capital spending and general corporate purposes.

Phillips 66 is expected to continue its strong operating performance and diversification into the midstream energy and chemicals businesses, which have more stable cash flows than the refining segment, S&P said.

The agency also said it expects this cash flow diversity to keep Phillips 66’s consolidated credit measures strong under most commodity price scenarios with net debt-to-EBITDA in the low 1x range for 2015.

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