S&P Global Ratings assigned a BB- issuer credit rating to CVR Energy Inc. and a BB- issue-level rating to its senior notes due 2025 and 2028. The outlook is stable.
CVR Refining LLC and CVR Partners LP's ratings remain unchanged, according to a Jan. 9 research update.
Ratings believes that while CVR Energy is exposed to very volatile businesses and has a limited scale compared with other industry peers, it is partially compensated by the above-average complexity of its two refineries. The rating agency also expects CVR Energy's consolidated leverage to remain between 2.1x and 2.3x after 2021 following a peak in 2020 due to scheduled maintenance at its largest refinery, which will affect cash flow generation in 2020.
The stable outlook reflects Ratings' expectation that the company will maintain a consolidated leverage of about 3x in 2020, decreasing to about 2.2x in 2021 following the scheduled maintenance of its Coffeyville refinery and improving refining margins.
On Jan. 7, CVR Energy announced plans to offer a private placement of $1.1 billion of senior unsecured notes due 2025 and 2028. The proceeds will be used to redeem all the outstanding 6.500% second lien senior secured notes due 2022 issued by subsidiaries CVR Refining and Coffeyville Finance Inc. as well as for general corporate purposes, which include funding acquisitions, capital projects and share repurchases.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.