S&P raises Krotz Springs

Standard & Poor's said it raised the corporate credit rating on Alon Refining Krotz Springs Inc. to B from B-.

At the same time, the agency said it revised the Creditwatch listing to positive implications from negative.

Additionally, the agency said it raised the senior secured rating on Krotz Springs' $302 million term loan to B+ from B. The recovery rating of 2 on the loan remains unchanged.

The rating actions reflect much improved debt leverage and liquidity levels following the announcement that Krotz Springs monetized hedges on heating oil for total proceeds of about $185 million including the release of $50 million cash collateral, S&P added.

Proceeds reduced debt levels by almost half ($185 million), and the company should be well within its amended financial covenants, the agency noted.

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