S&P cuts Alon Refining

Standard & Poor's said it lowered the corporate credit rating on Alon Refining Krotz Springs Inc. to B- from B. Ratings remain on CreditWatch with negative implications where they were placed on Dec. 23.

The downgrade reflects concerns that Alon Krotz Springs could have difficulty obtaining covenant waivers or amendments in a timely manner given the current credit environment, according to the agency.

Pro forma maximum debt leverage of 1.75x could be difficult to meet under current margin conditions. The downgrade also reflects the company's current thin liquidity and weak financial performance, the agency added.

S&P rates Alon Krotz Springs' debt, which is nonrecourse to Alon USA Energy Inc. (B+/stable), on a standalone basis.

Fitch downgrades GMAC

Fitch Ratings said it downgraded GMAC LLC's issuer default rating to Restricted Default following completion of the company's bond exchange.

The exchange covered $28.8 billion par value of unsecured institutional debt, which Fitch said it considers as a distressed debt exchange.

Subsequent to this action, Fitch said it placed GMAC's and Residential Capital LLC's issuer default ratings on Rating Watch positive.

The possible upgrade reflects the fact that, with the bond exchange and capital infusions from both the company's ownership and U.S. Treasury, GMAC has strengthened its financial profile and is now eligible to apply for the FDIC's Temporary Liquidity Guarantee Program, the agency noted.

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