S&P: GS Caltex bonds BBB-

Standard & Poor’s said it assigned a BBB- rating to GS Caltex Corp.’s proposed dollar-denominated senior unsecured bonds.

The proceeds will be used for general corporate purposes, including capital expenditures and refinancing, S&P said.

The stable outlook reflects a view that the company is likely to maintain financial strength commensurate with the current ratings over the next 24 months, the agency said.

To achieve this, the company will likely cut investments and sell assets, even though oil refining and petrochemical profitability is not likely to recover significantly in the next two years, S&P said.

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