S&P: Western Refining outlook negative

Standard & Poor's said it removed Western Refining Inc.'s B+ corporate credit rating from Creditwatch negative and assigned a negative outlook.

According to S&P, the rating action reflects strong results in the second half of 2008 and its expectations for improved first-quarter results versus year-ago levels.

Hence, Western should have an adequate covenant cushion as it continues to pursue debt reduction through asset sales.

In particular, near-term compliance with its debt leverage covenant, 5x as of March 31 and 4.75x as of June 30, should be achievable, the agency noted.

The agency said that liquidity concerns and its expectations that industry conditions could remain weak for 2009 and possibly beyond were key factors behind the rating actions, adding that it expects margins to remain thin and product demand weak.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.