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Moody's rates Alon Refining notes B2
Moody's Investors Service said it assigned a B2 corporate family rating and B2 (LGD3, 45%) rating to Alon Refining Krotz Springs, Inc.'s proposed senior secured notes offering.
The outlook is positive.
Moody's affirmed Alon USA Energy, Inc.'s B2 corporate family rating and B1 (LGD3, 43% from LGD2, 23%) senior secured term loan rating, and raised its probability-of-default rating to B2.
The outlook remains positive.
Proceeds will be used to repay a term loan of $163 million and to provide funding for a cash collateral account that will be used to support crack spread hedges.
The B2 corporate family rating reflects its strategic importance to Alon USA, the agency said.
The rating also reflects the single asset risk that bondholders face, the agency said.
These risks are mitigated by lower leverage after the second quarter debt reduction associated with an April amendment to its term loan agreement, Moody's noted.
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