Moody's confirms Valero, ups Kaneb

Moody's Investors Service said it confirmed Valero Logistics Operations LP's Baa3 senior unsecured rating with a stable outlook, ending a review for possible downgrade initiated on April 25. Moody's also upgraded the senior unsecured rating of Kaneb Pipeline Operating Partnership LP to Baa3 from Ba1 and changed the outlook to stable from developing.

The agency said the rating actions were in conjunction with its decision to confirm with a stable outlook the Baa3 senior unsecured rating of Valero Energy Corp., which controls the general partner of Valero LP, a master limited partnership and 100% owner of Valero Logistics Operations and Kaneb Pipeline Operating Partnership.

Moody's said the stable outlook for Valero LP and Kaneb reflects Valero's plan to repay about $480 million of debt related to its acquisition of Kaneb with proceeds from pending asset divestitures. Moody's had indicated at the time of the acquisition announcement (November 2004) that a stable outlook would require at least $200 million of debt repayment post closing.

© 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.