Moody's confirms Alon

Moody's Investors Service said it confirmed Alon USA Energy, Inc.'s B2 corporate family and probability-of-default ratings, and the B1 rating (LGD2, 23%) on its term loan.

The agency also confirmed the B1 (LGD 2, 27% from 26%) rating on Alon Refining Krotz Springs term loan.

The outlook is positive. This concludes the review begun on Dec. 23.

The confirmation reflects the company successfully obtaining the needed covenant amendment at its Along Refining subsidiary, removing immediate concerns over covenant violations and liquidity, the agency said.

The B2 rating also reflects company's set of refining assets that offers good diversification in terms of markets and products it offers, Moody's said.

"The positive outlook reflects the improved financial profile after the company significantly reduced its total outstanding debt, bringing its leverage in line with a higher rating," Moody's vice president, Ken Austin, said in a statement.

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