Moody’s: Koch, Flint Hills views to negative

Moody's Investors Service said it changed Koch Resources LLC's (KRLLC) outlook to negative from stable and affirmed its Aa3 issuer rating issuer rating and Prime-1 commercial paper rating.

At the same time, the agency changed Flint Hills Resources LLC's outlook to negative from stable and affirmed its A1 issuer rating and Prime-1 short term issuer rating.

Flint Hills is a wholly owned subsidiary of Koch Resources which, in turn, is a wholly owned subsidiary of Koch Industries, Inc. (KII, unrated).

"Koch Resources' negative rating outlook reflects the increasing pace and size of transactions at KII and KII-affiliates that have required calls on KRLLC's cash, which could pressure KRLLC's net debt-free position," Moody's vice president Gretchen French said in a news release.

"The rating affirmation reflects KRLLC's long-standing strong operating and financial profile. If KRLLC is able to restore its robust net-debt free position through a combination of retained earnings, cash infusions from KII-affiliated entities, and potential asset sales, the rating outlook would be restored to stable."

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