S&P rates Hfotco loan BB-

Standard & Poor’s said it assigned a BB- credit rating to Hfotco LLC, along with a BB- rating to the company’s $550 million senior secured term loan B and $75 million revolving credit facility.

The recovery rating on the term loan B and revolving credit facility is 3.

The outlook is stable.

The company has a satisfactory business risk profile, reflecting its relatively limited product and geographic diversity, which exposes the company to market changes or disruptions in the residual fuels market, S&P said.

Like other storage facilities, this company faces a risk of re-contracting at lower rates, the agency said.

Compared with other large storage facilities, however, Hfotco’s current contracts generally have longer tenors and are with investment-grade counterparties, S&P said.

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