In Light of Venezuela PDVSA Swap, Fitch Keeps Citgo On Negative Watch

If Citgo was taken away from Venezuela's PDVSA in a default, Fitch believes that Citgo could be investment grade. "Given CITGO's size, asset positioning, cash flow potential, and other factors, Fitch informally estimates that, on a stand-alone basis with no parental rating constraints, CITGO could be rated in the mid-to-high 'BB' range, and potentially investment-grade, depending on the company's capitalization following a change in control," Fitch theorized. More…