Standard and Poor's in its report of November 2012 affirmed BB- for long-term corporate rating and removed at the same time its ratings of October 3, 2012 from CreditWatch (ratings with negative implications). and
The outlook has also been improved from negative to stable.
Standard and Poor's analysts point out that by successfully placing five-year bonds of 500 million (November 9) HEP has strengthened its financial position and stabilized its liquidity.
The report also sees as positive that the bond proceeds will partly be used to repay the existing short-and long-term debt, whereby HEP decreases its exposure to short-term financing sources, extends total maturity of its credit portfolio and continues to proactively manage the Group's liquidity. The rest of the bond proceeds will be used to finance the investments started in 2012 and partly in 2013.
According to the analysts, this will also contribute to the stabilization of HEP's financial risk profile.