Standard & Poor's cut its long-term credit rating of Swiss-based oil refiner Petroplus to CCC+ from B on December 27, saying the company may not be able to make payments to keep operating.
The rating agency also placed Petroplus on CreditWatch negative after lenders on December 25 froze about $1 billion in borrowing allowances that it relies on to buy crude, sending the oil refiner's shares down almost 50 percent.
"The rating actions reflect Petroplus' reduced liquidity resources and the potential consequences for its operations and ability to meet payment obligations in a timely fashion," S&P said in a statement. "We now assess Petroplus' liquidity position as 'weak'."
Petroplus has some 4.4 percent of total European refining capacity, including plants in Petit Couronne in France, Coryton in the United Kingdom, Antwerp in Belgium, Ingolstadt in Germany and Cressier in Switzerland. On December 26 the French government said it would do all it could to help Petroplus negotiate with bankers as the firm neared a stopage of plants due to lack of crude.
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