S&P rates Hunt Refining loans B+

Standard & Poor's said it assigned a B corporate credit rating to Hunt Refining Co. and bank and recovery ratings to $760 million secured credit facilities, consisting of a the $400 million delayed-draw term loan, a the $130 million delayed-draw construction loan, a $100 million synthetic LOC facility, and a $130 million revolving credit facility.

S&P assigned the term loan a B+ with a recovery rating of 2.

The rating reflects a vulnerable business risk profile that incorporates the company's status as a small, independent, low-complexity company, the agency said. Its highly leveraged financial risk profile takes into account the significant amount of debt to fund the company's proposed expansion, S&P said.

Hunt's credit strength is limited by its participation in the volatile, highly competitive and capital-intensive refining industry, the agency said.

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