S&P downgrades Westway

S&P said it lowered the senior secured rating on Westway Group LLC to B from B+ and removed the rating from CreditWatch, where it was placed with negative implications in August.

The recovery rating of 3 is unchanged.

S&P also said it assigned an issuer credit rating of B.

The outlook is stable.

The downgrades reflect weaker-than-expected cash flow metrics over the past few years, S&P said.

The declines in cash flow metrics stem from weakened storage rates at some facilities during the past few years and lower utilization rates at certain facilities, the agency said.

Westway's operational performance at its existing facilities continues to be in line with expectations, S&P said.

The stable outlook reflects an expectation that the adjusted leverage should be about 6x during the next few years and that storage rates and utilization rates will not dip further, the agency said.

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