Moody's pumps up Par Petroleum

Moody's Ratings said it upgraded Par Petroleum, LLC's corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD. Moody's, however, affirmed the B1 rating of Par's backed senior secured term loan due 2030. The agency also upgraded Par's speculative grade liquidity rating to SGL-2 from SGL-3 and changed the outlook to stable from positive.

"The upgrade of Par Petroleum's ratings reflects benefits from increased scale and asset diversification from the acquisition of the Billings refinery and our expectation for the company to maintain solid credit metrics," commented Jonathan Teitel, a Moody's vice president and senior analyst, in a press release.

As of Dec. 31, Par had $279 million on its balance sheet and has lender commitments to boost its asset-based lending revolver due 2028 to $1.4 billion from $900 million. The cash and the larger ABL revolver support the improved SGL rating, Moody’s said.

The agency said the stable outlook reflects an expectation that Par will maintain solid credit metrics and liquidity into 2025.

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