S&P upgrades Alon Refining

Standard & Poor's said it raised its corporate credit rating on Alon Refining Krotz Springs Inc. to B+ from B and removed the ratings from CreditWatch, where they were placed with positive implications on April 28.

Krotz Springs is a wholly owned, restricted indirect subsidiary of Alon USA Energy Inc. (B+/stable/--).

S&P raised the issue-level rating on the term loan to BB- from B+. The recovery rating on this debt remains 2, indicating expectations of substantial (70%-90%) recovery in a payment default. The outlook is stable.

"The upgrade reflects our expectations that Alon USA Energy Inc. [Alon USA] and parent Alon Israel Oil Co. Ltd. [Alon Israel] will continue to provide financial and operational support to Alon Refining Krotz Springs Inc.," said S&P credit analyst Aniki Saha-Yannopoulos in a news release. "This thus leads us to equate our ratings on Alon Krotz Springs to that of its parent, Alon USA."

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