(Citgo, 5.Sep.2019) — Standard & Poor’s (S&P), a leading credit rating agency, has removed Citgo Holding, Inc. and Citgo Petroleum Corporation’s outlook from credit watch and has placed them on a stable outlook. While S&P has reaffirmed its long-term issuer credit rating on both entities at B-; it also announced it upgraded both entities’ stand-alone credit profile to BB from BB-. S&P’s improved outlook comes on the heels of Fitch Ratings’ mid-July upgraded rating of Citgo Holding, Inc. and projection of a stable outlook.
“Since our appointment in February, the Boards of Citgo Holding and Citgo Petroleum have focused on financial stability as one of their priorities,” said Board Chairwoman Luisa Palacios. “The latest rating actions from S&P and Fitch Ratings, reflect the progress we have made on this front. We look forward to continued growth, especially with Carlos Jordá as Citgo Petroleum’s new Chief Executive Officer.”
Jordá added, “In my first weeks as CEO, I have already seen the commitment the Board and senior leadership have to ensuring the company’s financial health, allowing for operational excellence. These outlook and rating improvements from S&P and Fitch Ratings, respectively, as well as the successful Citgo Holding refinancing, are indicative of strong market confidence. I look forward to working with the entire Citgo team to build on these achievements.”
In early August, Citgo Holding Inc., announced a successful debt refinancing that will result in an estimated savings of more than $200 million over five years. Its $1.870 billion in notes set to mature in 2020 were replaced by a four-year $500 million Term Loan B and $1.37 billion of five-year bonds.