S&P: Alon on watch

Standard & Poor's said it placed its ratings, including the B corporate credit rating, on Alon Refining Krotz Springs Inc. on Creditwatch with negative implications.

"The Creditwatch action reflects its concerns about the company's ability to meet its financial covenants under its term loan and credit facility agreements at year-end," said S&P credit analyst Paul B. Harvey.

"In particular, the agency said it believe pro forma maximum debt leverage of 1.75x could be difficult to meet under current margin conditions, despite the favorable distillate hedges."

Alon Krotz Spring's parent, Alon USA Energy Inc. (B+/stable) acquired Krotz Springs earlier this year, the agency noted.

"We could lower the ratings on Alon Krotz Springs if it fails to remain in compliance with the financial covenants under its debt obligations and is unable to obtain amendments or waivers if necessary," Harvey said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.