S&P rates Caltex notes BBB

S&P said it assigned a BBB rating to the dollar-denominated unsecured notes issued by GS Caltex Corp.

The proceeds will be used for general corporate purposes, including refinancing.

The positive outlook reflects a view that there is more than a one-in-three likelihood that the ratings will be upgraded, S&P said.

This will happen if GS Caltex's ongoing debt reductions continue to build a buffer against industry volatility over the next two-years, the agency explained.

Recent efforts to reduce debt have been underpinned by conservative investment and dividend policies, S&P said, as well as solid trends in the refining and petrochemical industry.

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