Moody's may up Premcor

Moody's Investors Service said it placed Premcor Refining Group's ratings under review for upgrade. Premcor Refining is wholly owned by Premcor Inc.

Premcor's senior implied and senior unsecured note ratings are Ba3 and the outlook has been positive.

Under review are Premcor Refining's Ba2 rated $1 billion bank facility, Ba3 rated senior unsecured notes and B2 rated senior subordinated notes and Premcor's Ba3 senior implied and B1 non-guaranteed senior unsecured issuer ratings.

Moody's said the review reflects enhanced internal funding strength due to an unseasonably strong fourth quarter 2004 on historically wide crude oil quality price differentials, inherently greater visibility now on an expected seasonally sound second and third quarter crack spread environment, the strong margin benefit of continuing very wide crude oil price differentials and if an acquisition is announced, funding would occur later this year after further earnings accumulation.

© 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.