Moody’s Investors Services, the U.S.-based credit agency, boosted its outlook for the global independent refining and marketing industry to stable from negative.
“Worldwide growth in demand for refined products will slow through 2013,” Gretchen French, a vice president of the ratings agency in New York, said today in an e-mailed statement. “We expect modest growth in the U.S., but also see weakness in Europe and economic slowing in China.”
The group will continue to face difficulties from “long- term secular decline” in demand for gasoline from countries in the Organization for Economic Cooperation and Development and as a forecast increase in refining capacity outpaces growth in consumption by 900,000 barrels a day next year, Moody’s said.
Since the start of last year at least seven sites have closed in Europe and Petroplus Holdings AG, previously the region’s largest independent refiner, filed for bankruptcy.
The increase in the rating is based on Moody’s view of the fundamental credit conditions for the industry in the next year to 18 months, it said, without elaborating.
To contact the reporter on this story: Rupert Rowling in London at firstname.lastname@example.org
To contact the editor responsible for this story: Stephen Voss at email@example.com