S&P withdraws Hovensa loans, others unchanged

Standard & Poor's said it withdrew the B rating on Hovensa LLC's $362.5 million revolving credit facility.

The B ratings and negative outlook on the company's revenue bonds are unaffected by news that the project will shut down its 350,000 barrel per day facility in St. Croix, S&P said.

The project has cited losses of $1.3 billion over the past three years, the agency said, and its expectation of continued poor financial performance as the reasons for closing the refinery.

S&P said it expects Hovensa to commence a tender offer in the next week for all $355.7 million of outstanding bonds at par.

When the project successfully redeems the bonds, the agency said it expects to withdraw the project ratings.

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