S&P cuts Westway to B+

Standard & Poor's said it lowered its senior secured project rating on Westway Group LLC to B+ from BB-.

The rating was removed from CreditWatch, where it was placed with negative implications on May 1.

The outlook is negative.

The recovery rating is unchanged at 3, which reflects "meaningful" recovery (50% to 70%; lower end of the range) if a default occurs.

S&P said the downgrade stems mainly from a revision of its financial forecast. The agency previously believed that the project would have minimum debt service coverage ratios (DSCR) of around 1.7 times. Now, S&P expects that 2015 and 2016 DSCRs will be somewhat lower due to higher capital spending and a deferral of certain revenues associated with new expansion projects.

Furthermore, the agency said it believes post-maturity DSCRs will be lower as well, with a minimum of about 1.4 times in 2021.

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