MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services assigned its
'B' corporate credit rating to refining company Alon Refining Krotz Springs
Inc., a wholly-owned restricted indirect subsidiary of Alon USA Energy Inc.
The outlook is stable and reflects the rapid debt repayment over the next
two years while Alon Krotz Springs' hedges are in place, the rating agency said.
S&P also assigned a 'B+' rating to Alon Krotz Springs' proposed $295 million
term loan facility, which includes a $50 million letter of credit facility.
The loan has been rated one notch higher than the corporate credit rating
with a recovery rating of '2', indicating its expectation for the substantial
recovery of the principal in the event of a payment default.
The proceeds from the term loan will be used to help fund Alon USA's $475
million acquisition of Valero Energy Corp.'s Krotz Springs refinery, S&P said.
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