S&P rates Calumet loans B+, BB-

Standard & Poor's said it assigned its B corporate credit rating to Calumet Lubricants Co. LP. S&P said it also assigned its B+ senior secured debt rating and its 1 recovery rating to Calumet's proposed $175 million term loan facility due 2012 and its BB- senior secured rating and 1 recovery rating to Calumet's $50 million letter-of-credit facility due 2012.

The outlook is stable.

The ratings reflect the company's position as a small, highly leveraged, independent petroleum refiner operating in a very competitive, erratically profitable and capital-intensive industry, S&P said.

Volatility is somewhat lessened by Calumet's specialty products business, which is typically less volatile than fuels production, as well as hedging on crude oil purchases for specialty products and crack spreads on fuel production, S&P said.

S&P also said Calumet's fuel production is tier II compliant and faces minimal future environmental spending, providing adequate cash flows for debt reduction.

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