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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

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2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

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Rating Action:

Moody's upgrades ratings of CITGO Petroleum and CITGO Holding; stable outlook

15 Mar 2018

New York, March 15, 2018 -- Moody's Investors Service upgraded CITGO Petroleum Corporation (Citgo Petroleum)'s Corporate Family Rating to B3 from Caa1; its Probability of Default rating to B3-PD from Caa1-PD; and its senior secured ratings on term loans and global notes and IRB's to B3 (LGD3) from Caa1 (LGD4). The rating on Citgo Petroleum's senior secured revolving credit facility was upgraded to B2 (LGD3) from B3 (LGD4).

Furthermore, Moody's upgraded CITGO Holding, Inc. (Citgo Holding)'s Corporate Family Rating to Caa1 from Caa2; and its senior secured ratings on global notes Caa1 (LGD4) from Caa2 (LGD4). In addition, Moody's withdrawn Citgo Holding's senior secured term loan B due 2018 as is no longer outstanding.

The ratings outlook for Citgo Petroleum and Holding was changed to stable from negative.

Ratings upgraded as follows:

..Issuer: Citgo Petroleum Corporation

....Corporate Family Rating to B3 from Caa1

....Probability of Default rating to B3-PD from Caa1-PD

....Senior Secured Global Notes due 2022 to B3 (LGD3) From Caa1 (LGD4)

....Senior Secured Term Loan B due 2021 to B3 (LGD3) From Caa1 (LGD4)

....Senior Secured Revolving Credit Facility due 2019 to B2 (LGD3) From B3 (LGD4)

..Issuer: Gulf Coast Industrial Development Authority

....Senior Unsecured Industral Revenue Bonds IRB's to B3 (LGD3) From Caa1 (LGD4)

..Issuer: Illinois Development Finance Authority

....Senior Unsecured Industral Revenue Bonds IRB's to B3 (LGD3) From Caa1 (LGD4)

..Issuer: Citgo Holding Inc.

....Corporate Family Rating to Caa1 from Caa2

....Senior Secured Global Notes due 2020 to Caa1 (LGD4) from Caa2 (LGD4)

....Probability of Default Rating Assigned at Caa1-PD

....Senior Secured Term Loan B due 2018, withdrawn, previously rated Caa2 (LGD4)

Outlook Actions:

..Issuer: Citgo Petroleum Corporation

....Outlook, Changed To Stable From Negative

..Issuer: Citgo Holding Inc.

....Outlook, Changed To Stable From Negative

RATINGS RATIONALE

Although Moody's downgraded the ratings on Petroleos de Venezuela, S.A. (PDVSA) to C from Ca on March 14, 2018, the upgrades on the ratings of Citgo Petroleum and Citgo Holding were based on Moody's view that current ratings better reflect the credit risk that derives from continued deterioration in the business and financial profile of their ultimate parent company, PDVSA. Bondholders at Citgo Petroleum and Citgo Holding, both domiciled in the US, are protected with security packages and restrictions related to increase in debt leverage, dividend payments, asset sales, and new business associations, among other. In addition, the companies' refineries continue to generate good financial results, fund capital spending internally, maintain a solid liquidity profile and access to capital markets, including cash and committed bank facilities. However, Moody's notes that both companies lack independent boards, with members and senior management appointed by PDVSA.

The ratings of the senior secured credit facility and other classes of debt reflect their priority claim under Moody's Loss Given Default methodology. CITGO Petroleum Corporation's senior secured revolving credit facility is rated one notch higher than its Corporate Family Rating because of its priority claim to certain assets of the company. The remaining debt for both companies is rated at the same level as the Corporate Family Ratings.

PDVSA is the ultimate controlling shareholder of Citgo Petroleum and Citgo Holding.

Citgo Petroleum Corporation, based in Delaware, US, is an independent refining company with 749,000 bpd of capacity in three large refineries that have good logistical and market positions in the US Gulf Coast and Midwest markets. Citgo Petroleum is a wholly owned subsidiary of PDVSA, the state oil company of Venezuela. As of September 2017, Citgo Petroleum reported assets and EBITDA of $7.9 billion and $1.3 billion, respectively.

Citgo Holding, Inc, based In Delaware, US, is holding company with no direct operations and no significant assets other than its ownership of 100% of the capital stock of Citgo Petroleum Corporation and 100% of the limited liability company interests of Citgo Holding Terminals, Southwest Pipeline Holding and Midwest Pipeline Holding, all operating companies.

The principal methodology used in these ratings was Refining and Marketing Industry published in November 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Nymia C. Almeida
VP - Senior Credit Officer
Corporate Finance Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 1 888 779 5833
Client Service: 1 212 553 1653

Marianna Waltz, CFA
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 800 891 2518
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

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Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
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