Moody’s downgrades Citgo Petroleum

Moody's Investors Service said it downgraded Citgo Petroleum Corp.'s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and senior secured and unsecured ratings on term loans and global notes and IRB's to Caa1 (LGD4) from B3 (LGD4).

The rating on the senior secured revolving credit facility was downgraded to B3 (LGD4) from B2 (LGD3).

Furthermore, Moody's downgraded Citgo Holding, Inc.'s corporate family rating to Caa2 from Caa1 and senior secured ratings on term loans and global notes Caa2 (LGD4) from Caa1 (LGD4).

The outlooks were changed to negative from stable.

Moody’s said the actions follow its Nov. 6 downgrade of Petroleos de Venezuela SA (PDVSA)'s ratings to Ca from Caa3 given the company's payment default on Nov. 2, related to the 2017 notes, and the agency’s expectation that PDVSA will default on other debt obligations in the near-term given its significant financial stress and the government's stated intention to restructure its debt.

PDVSA is the ultimate controlling shareholder of Citgo Petroleum and Citgo Holding.

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