...Fitch Ratings placed the ratings of both CITGO Petroleum Corp. (CITGO or Opco) and CITGO Holding, Inc. (Holdco) on Rating Watch Negative (RWN) reflecting the heightened refinancing risk for the company related to U.S. sanctions on Venezuela (RD). Refinancing risk applies to both the Opco's $900 million secured revolver, which expires in July of this year, and the Holdco's $1.875 billion notes, which is due in February 2020. Both issues are now current. Fitch expects to resolve the RWN by mid-summer; however, it could be extended if the company has a credible plan to refinance or find alternative sources of liquidity that extend somewhat beyond the revolver expiration date. CITGO's ratings are supported by the quality of its refining assets, modest capex requirements, and a robust macro environment for refiners, including the positive expected effects of the International Maritime Organization's 2020 regulations (IMO 2020) for higher complexity refiners. The ratings also include the favorable...
