Moody’s rates Raffinerie Heide, notes B3

Moody's Investors Service said it assigned Raffinerie Heide GmbH a B3 corporate family rating, B3-PD probability of default rating and a provisional B3 rating to the proposed €250 million senior secured notes due 2022.

The notes are guaranteed by all the operating subsidiaries.

The outlook is stable.

Moody’s said the assignment of a B3 corporate family rating reflects Heide's: (a) good quality refinery with Nelson Complexity index of 9.9 in line with other rated European refineries and a high grade product slate with 50% production of high margin middle distillates; (b) ability to process different types of crude oil leading to pricing and sourcing benefits; and (c) strategic location of the refinery which provides competitive advantage in North Germany and benefits from inland price premium with 75%-80% products sold domestically.

The rating also reflects the company’s integrated infrastructure business model with midstream assets having access to 9 owned pipelines, leased harbor terminal resulting in efficient supply of products to and from the refinery, 5.9 million barrels of owned tank storage capacity and ownership of 48.5 MW power plant for captive use, and exposure to a benign refining market environment, the agency explained.

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