Fitch lowers Citgo, gives notes, loan BB+

Fitch Ratings said it downgraded the issuer default rating of Citgo Petroleum Corp. to B+ from BB- and its senior secured rating to BB+ from BBB-.

The agency said that Citgo's current ratings are as follows: issuer default rating B+; senior secured credit facility BB+; secured term loan BB+; and fixed-rate industrial revenue bonds at BB+.

In addition, Fitch added that it assigned BB+ ratings to up to $1.5 billion of senior secured notes, a $700 million secured revolver and $300 million secured term loan.

The outlook was revised to stable from negative.

Citgo's ratings remain constrained by their ultimate linkage to parent Petroleos de Venezuela SA (issuer default rating B+ with a stable outlook), as well as depressed conditions in the refining sector, which are expected to persist in the near-to-medium term due to a significant oversupply of global refining capacity, the agency said.

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