S&P cuts PBF

S&P said it downgraded the issuer credit rating and senior unsecured debt ratings on PBF Holding Co. LLC to B+ from BB. Concurrently, the agency lowered the issue-level ratings on the senior secured debt to BB from BBB-. The 1 recovery rating on the secured debt and 3 recovery rating on the unsecured notes are unchanged.

S&P also trimmed the issuer credit rating and senior unsecured debt ratings on PBF Logistics LP to B+ from BB-. The 3 recovery rating is unchanged.

“Though demand for certain refined products has slowly recovered from earlier this year, we expect margins to remain depressed and no longer assume a mid-cycle price environment in 2021. The rating action reflects a slower path-to-recovery than previously forecast. Though refined product demand has recovered from levels during the national lockdown, margins remain depressed, and we no longer forecast PBF Holdings to generate positive cash flow for the full-year 2020,” S&P said in a press release.

S&P noted the company’s focus on cost-cutting and improving efficiency will enable it to save $100 million and protect liquidity in the near term.

The outlook is negative.

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