Fitch: Merey Sweeny view negative

Fitch Ratings said it affirmed Merey Sweeny LP's 8.85% senior unsecured bonds due 2019 at BBB. The outlook was revised to negative from stable.

The outlook revision is based on lack of contracted crude deliveries to the ConocoPhillips Sweeny refinery by partner Petroleos de Venezuela SA (B+/stable), uncertainty about future deliveries of crude oil and the potential deterioration in coverage ratios, according to the agency.

The affirmation is based on the strong operational history, pledges by sponsors, turnaround and maintenance expenses in the event of a shortfall of cash from operations, seniority of the debt service payments in the cash waterfall and structural protections to mitigate compression of spreads between light and heavy oil, the agency said.

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