April 27 – Standard & Poor’s Ratings Services said today it assigned its
‘A-2’ short-term rating to Phillips 66’s $4 billion commercial paper program.
According to Standard & Poor’s corporate criteria, our ‘BBB’ corporate credit
rating on Phillips 66 maps to a commercial paper rating of ‘A-2’. The company
expects to use the short-term program for general corporate purposes. We expect
that any issuance under Phillips 66’s commercial paper program will be 100%
backstopped by availability under its $4 billion revolving credit facility
expiring 2017.
The rating on Phillips 66 reflects a “satisfactory” business risk profile and
an “intermediate” financial risk profile (as our criteria define the terms).
Phillips 66’s refining and marketing businesses, which we consider to be
highly cyclical and volatile, contributed about 80% of fiscal 2011 earnings.
We consider Phillips 66’s liquidity as “strong” under our corporate liquidity
methodology. Pro forma for its spin-off from ConocoPhillips, we expect
Phillips 66 to have about $8 billion of total debt.
RELATED CRITERIA AND RESEARCH
— Key Credit Factors: Criteria For Rating The Global Oil Refining
Industry, Nov. 28, 2011
— Methodology And Assumptions: Liquidity Descriptors For Global
Corporate Issuers, Sept. 28, 2011
— Principles Of Credit Ratings, Feb. 16, 2011
RATINGS LIST
Phillips 66
Corporate credit rating BBB/Stable/A-2
New Rating
Commercial paper A-2
