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Moody's rates Calumet B2, notes B3
Moody's Investors Service said it assigned B2 corporate family and probability of default ratings and an SGL-3 speculative grade liquidity rating to Calumet Specialty Products Partners, LP and a B3 rating to the notes being offering by the company.
The outlook is stable.
The new notes will be used to refinance the existing senior secured credit facilities at Calumet Lubricants Co., LP, the operating company for Calumet.
The agency said the B2 corporate family rating reflects the inherent volatility of the company's transportation fuels and specialty products businesses juxtaposed with the distribution needs of the master limited partnership model and the increased pro forma debt levels. The refinancing will increase the pro forma adjusted debt-to-EBITDA ratio to about 5.8 times from 5 times, Moody's said.
The B2 rating also considers Calumet's niche position within the specialty products industry and the degree of cash flow durability this business provides relative to its transportation fuels business, the agency said.
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