Fitch Lowers Hovensa to BB Minus

Fitch has downgraded Hovensa’s senior secured debt rating to BB minus from BB+, putting its outlook back to stable from negative. Hovensa is a joint venture between Hess and Venezuelan state-owned oil company PDVSA, and operates in the US Virgin Islands. The ratings downgrade affects some $750m of debt, including bonds maturing in 2022 and a senior secured bank revolver. The agency cites high capex requirements and higher-than-expected financial support for the project as reasons for the downgrade “Given weak refining economics and higher capital costs, Fitch believes the project will continue to require liquidity from the its revolving credit facility and working capital support from Hess and PDVSA,” it says.