Swiss oil refiner is downgraded third time in as many months

Moody’s yesterday downgraded Swiss oil refining company Petroplus for the third time in three months, despite it renegotiating its revolving credit facility.

Having started November 2011 with a B1 corporate family rating, the latest move takes it down from Caa1 to Caa2 and this is still under review for a further downgrade after two of the company’s five refining plants have been shut down and one more is due to close next week.   

Petroplus said in a statement that the renegotiation of the credit facility would allow it to make critical payments and keep operating while it renegotiates the rest of its credit facilities.

Markets seemed to look more favouably on the move than Moody's, as the company's 9.375% senior notes due 2019, $600 million in 7% and $600 million of 6.75% senior notes all jumped to the low 50s having previously traded in the low 40s according to market sources.