...Positive factors supporting CITGO Petroleum Corporation s (CITGO) ratings include the company s complex refineries, which ca n process a high percentage of lower- cost heavy, sour crude; and the streng th of the collateral underlying CITGO s secured debt, including its two Gulf Coast refineries, plus related working capital accounts. Downsides affecting the rating include the ongoing liquidation of non-core assets (which reduces cash flow diversificat ion); free cash flow pressure on CITGO stemming from the large distributions it co ntinues to upstream to its parent; and the current sharp downturn in North Amer ican fuel consumption, led by demand destruction in gasoline. Linkage to the parent continues to constr ain CITGO s current rating. CITGO s issuer default rating (IDR) reflects the company s strong link with parent PDV America (a wholly owned subsidiary of Petr leo s de Venezuela SA [PDVSA; IDR BB - /Negative Rating Outlook]), which manifests itself through...
