S&P boosts Aventine Renewable Energy

Standard & Poor's said it raised its corporate credit rating on Aventine Renewable Energy Holdings Inc. to B+ from B- after the company's successful completion of a tender offer for all of its $160 million senior secured notes due in 2011.

The outlook is stable.

The agency said that the decrease in leverage has dramatically improved Aventine's ability to service debt going forward, but the rating remains restricted by the company's ability to incur additional amounts of debt without restriction.

Given the risky nature of the ethanol industry, it is unlikely that Aventine's rating would move higher than B+, the agency noted, adding that exposure to volatile commodity prices could lead to decreased revenue and increased costs in a high corn price and low ethanol price environment.

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