S&P ups CVR Partners

S&P said it raised CVR Partners LP’s issuer credit rating to B+ from B, revised the outlooks on all entities in the CVR group to stable from negative and affirmed the B+ issuer credit ratings on CVR Energy Inc. and CVR Refining LP.

“Strong cash flow generation from CVR Partners is a key contributor to improving credit metrics over the short term. Ammonia and urea ammonium nitrate (UAN) prices increased significantly in 2021 on the back of strong demand (owing to higher commodity prices and longer planting times) and reduced supply (due to storm-related weather disruptions in the Midwest and Gulf Coast and excise taxes on imports),” S&P said in a press release.

The agency said it sees CVR realizing full-year 2021 price increases of 90% and 74% for ammonia and UAN products, respectively, and expects the price increases, which accelerated in each quarter of 2021, to continue into 2022 before moderating in the second half of the year.

“We forecast full-year EBITDA from CVR Partners of $210 million in 2021, growing to $350 million to $400 million in 2022 and 2023,” the agency said.

S&P said it estimates consolidated leverage at CVR Energy falling below 3x in 2022.

© 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.