Moody's ups GS Caltex

Moody's Investors Service said it upgraded the long-term rating of GS Caltex Corp. to Baa1 from Baa2.

The outlook is stable.

Moody's said the rating upgrade reflects GS Caltex's strengthened operating and financial profile, its continued prudence in managing its balance sheet and the agency's expectation of continued solid domestic and regional industry environment over the next two years.

The rating upgrade also recognizes GS Caltex's association with Chevron Corp. (Aa2), which owns 50% of the company and increasingly views it as part of its Asian downstream strategy, Moody's said.

However, GS Caltex maintains a relatively high level of reliance on short-term funding, which has been above 30% of total debt the past three years, although part of this debt relates to use of bank credit facilities to support crude oil purchases and is therefore self-liquidating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.