Moody’s Changes PBF Rating Outlook

Instant Max AI

(Moody’s, 22.Jun.2015) – Moody’s Investors Service changed PBF Holding Company LLC’s rating outlook to positive from stable. Moody’s also affirmed PBF’s Ba3 Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating, and Ba3 senior secured notes ratings following its announced acquisition of the Chalmette refinery.

“PBF’s positive rating outlook reflects the expected increase in refining scale and geographic diversification, and the potential for better crude sourcing and product distribution ability if the Chalmette refinery acquisition closes as anticipated in 2015,” said Arvinder Saluja, Moody’s VP. “This acquisition builds on PBF’s four year track record of operating its existing three refineries.”

On 19.Jun.2015, PBF’s parent, PBF Energy Inc., announced that it has signed an agreement to purchase the Chalmette refinery with 189,000 b/d throughput capacity from subsidiaries of ExxonMobil (Aaa stable) and Petroleos de Venezuela, S.A. (Caa3 stable). The $322 million purchase price plus an estimated $300 million – $500 million of working capital will be funded using a combination of cash and debt. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the 4Q:15.

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