This report does not constitute a rating action.
The following lists rank the global portfolio of oil refining and marketing companies that S&P Global Ratings rates, from strongest to weakest. We rank companies, in turn, by the rating, outlook, stand-alone credit profile (SACP), business and financial risk profile, and liquidity assessment. We rank investment-grade companies by business risk profile, then financial risk profile. We order speculative-grade companies by financial risk profile, then business risk profile. We then list companies in alphabetical order, if not distinguished by these factors. We exclude integrated oil and gas companies, since their upstream (exploration and production) divisions typically generate a larger proportion of group cash flow, even if they also own some of the largest downstream assets. Similarly, we exclude marketing and retail businesses with no refining assets.
In line with our corporate rating methodology, the final rating may differ from the SACP, where group, government, or rating above the sovereign considerations apply. Where the SACP differs from the anchor, as it does for about 57% of the ratings, we have applied one or more modifiers, which may include that for liquidity. We have noted the anchor and active modifiers of each company, for informational purposes only. For our more detailed analysis, please refer to the company-specific pages on RatingsDirect.
Most of our business risk assessments are closely correlated with the corresponding competitive positions (see chart 3). Similarly, given our moderately high industry risk assessments for the oil refining and marketing sector, country risk has no further material impact on the corporate industry and country risk assessment because the rated companies are based in jurisdictions where we assess country risk as moderately high and lower. Government or group ownership is an explicit rating factor for about 39% of the companies. In almost all cases, our analysis of this ownership results in a rating higher than the SACP.
For our sector outlooks and analysis, as well as ranking lists for other subsectors of the oil and gas industry, please refer to the commentaries listed under Related Research at the end of this article.
| Investment-grade refining and marketing companies | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FC LT | ||||||||||||||||||
| Org Name | Rating | Outlook | SACP | Business risk profile | Financial risk profile | Liquidity | Anchor | Modifiers | ||||||||||
| Flint Hills Resources LLC* | A+ | Stable | a- | Satisfactory | Minimal | Adequate | a- | N/A | ||||||||||
| Phillips 66 | BBB+ | Stable | bbb+ | Satisfactory | Intermediate | Strong | bbb | CRA: Positive (+1 notch) | ||||||||||
| Reliance Industries Ltd. | BBB+ | Stable | bbb+ | Satisfactory | Intermediate | Adequate | bbb | CRA: Positive (+1 notch) | ||||||||||
| GS Caltex Corp. | BBB+ | Stable | bbb | Satisfactory | Modest | Adequate | bbb+ | CRA: Negative (-1 notch) | ||||||||||
| Motiva Enterprises LLC* | BBB+ | Stable | bb+ | Fair | Intermediate | Strong | bb+ | N/A | ||||||||||
| Valero Energy Corp. | BBB | Stable | bbb | Satisfactory | Intermediate | Strong | bbb | N/A | ||||||||||
| Marathon Petroleum Corp. | BBB | Stable | bbb | Satisfactory | Significant | Strong | bbb | CRA: Positive (+1 notch) | ||||||||||
| S-Oil Corp.* | BBB | Stable | bb | Satisfactory | Significant | Less than adequate (-1) | bb+ | N/A | ||||||||||
| PT Kilang Pertamina Internasional | BBB | Stable | bb- | Satisfactory | Highly leveraged | Adequate | b+ | CRA: Positive (+1 notch) | ||||||||||
| Thai Oil Public Co. Ltd.* | BBB | Watch Neg | bb- | Satisfactory | Highly leveraged | Adequate | b+ | CRA: Positive (+1 notch) | ||||||||||
| HF Sinclair Corp. | BBB- | Stable | bbb- | Fair | Intermediate | Strong | bb+ | CRA: Positive (+1 notch) | ||||||||||
| Deer Park Refining L.P.* | BBB- | Stable | bb- | Fair | Significant | Adequate | bb | CRA: Negative (-1 notch) | ||||||||||
| Administracion Nacional de Combustibles Alcohol y Portland* | BBB- | Stable | b+ | Fair | Aggressive | Less than adequate (-1) | bb- | N/A | ||||||||||
| Empresa Nacional del Petroleo* | BBB- | Stable | b+ | Fair | Aggressive | Less than adequate (-1) | bb- | N/A | ||||||||||
| SK Innovation Co. Ltd. | BBB- | Negative | bb+ | Satisfactory | Aggressive | Adequate | bb | N/A | ||||||||||
| Moeve* | BBB- | Negative | bb+ | Fair | Significant | Strong | bb | CRA: Positive (+1 notch) | ||||||||||
| Ratings and scores as of May 27, 2025. *Group or government-related entity. FC--Foreign currency. LT--Long term. SACP--Stand-alone credit profile. N/A--Not applicable. CRA--Comparable ratings analysis. Source: S&P Global Ratings. | ||||||||||||||||||
| Speculative-grade refining and marketing companies | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FC LT | ||||||||||||||||||
| Org Name | Rating | Outlook | SACP | Business risk profile | Financial risk profile | Liquidity | Anchor | Modifiers | ||||||||||
| PBF Holding Co. LLC | BB | Stable | bb | Fair | Intermediate | Strong | bb+ | CRA: Negative (-1 notch) | ||||||||||
| Delek US Holdings Inc. | BB- | Stable | bb- | Fair | Significant | Strong | bb | CRA: Negative (-1 notch) | ||||||||||
| Preem Holding AB (publ) | BB- | Stable | bb- | Weak | Significant | Adequate | bb- | N/A | ||||||||||
| Par Petroleum LLC | B+ | Stable | b+ | Weak | Significant | Adequate | bb- | CRA: Negative (-1 notch) | ||||||||||
| CVR Energy Inc. | B+ | Negative | b+ | Weak | Aggressive | Adequate | b+ | N/A | ||||||||||
| Petroleos del Peru Petroperu S.A.* | B | Stable | ccc | Fair | Highly leveraged | Weak | b | M&G: Negative (-1) | ||||||||||
| CITGO Holding Inc. | B- | Stable | bb | Fair | Intermediate | Strong | bb+ | CRA: Negative (-1 notch) | ||||||||||
| Ratings and scores as of May 27, 2025. *Group or government-related entity. FC--Foreign currency. LT--Long term. SACP--Stand-alone credit profile. N/A--Not applicable. CRA--Comparable ratings analysis. Source: S&P Global Ratings. | ||||||||||||||||||
The tables and charts in this publication provide an overview of the 23 entities we rate in this industry. We rate 16 entities as investment-grade ('BBB-' and above) and seven entities as speculative-grade ('BB+' and below).
Chart 1
Across the corporate universe, about 60% of our ratings are speculative-grade. Ratings below 'BB+' in oil refining and marketing account for approximately 30%. This smaller share for an intrinsically risky industry in part reflects government and group support, since about 56% of the investment-grade ratings have speculative-grade SACPs.
Chart 2
Presently, our outlooks on the ratings within the sector are mostly stable. We assume that, on average, 2025 refining margins will be broadly in line with or somewhat better than 2024 levels. In 2025, we expect refining margins will be supported by tight product supply, steady demand, and low product inventories. Increased production from the Organization of the Petroleum Exporting Countries Plus (OPEC+) could offset some of the near-term supply tightness but may help widen quality differentials. We expect underlying fundamentals could support refining margins because announced refinery closures in the Americas offset recent global capacity additions. Given the broadly supportive market fundamentals, generally ample liquidity, and balance sheet cushions for most of the portfolio, many of our ratings have some headroom, supporting our outlooks.
Our ratings are underpinned by our base case assumptions, but also generally factor in some headroom for short-term volatility and longer-term cyclicality of prices and margins. This is particularly true when prevailing margins and our assumptions are relatively strong or high by historical standards.
Our business risk profile assessments (a combination of country risk, industry risk, and entity-specific competitive position) typically mirror our view of competitive position in this sector (see chart 3). Where they diverge, it is usually because we see the industry risk as a constraint for the business risk.
Chart 3
Chart 4
The most common financial risk profile assessment in this sector is significant (see chart 4). After several years of at least supportive refining margins, our financial risk assessments, whether highly leveraged or better, typically reflect both the underlying metrics and some leeway to accommodate moderately higher leverage in a cyclical downturn.
Chart 5
We consider most oil refining issuers to have liquidity that is adequate or better (see chart 5). This is important because pricing and volumes for refining (and hence working capital funding) are sometimes unpredictable and volatile. Typically, the amount of cash refining companies maintain, combined with their cash generation and liquidity resources, will cover the uses of cash to which they have committed over the next 12 months by 1.2x or more.
The ratings and scores in this document are as of May 27, 2025, and we will not keep it updated. To keep it concise, the list only discloses scores for the main rated entity of larger corporate groups. We may omit certain entities, such as subsidiaries or holding companies, where the ratings are linked to those on their parent companies. We also omit preliminary ratings, typically those that are contingent on a capital markets transaction.
Related Criteria
- General Criteria: Sector-Specific Corporate Methodology, April 4, 2024
- General Criteria: Corporate Methodology, Jan. 7, 2024
- Methodology: Management And Governance Credit Factors For Corporate Entities, Jan. 7, 2024
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021
- General Criteria: Group Rating Methodology, July 1, 2019
- General Criteria: Corporate Methodology: Ratios And Adjustments, April 1, 2019
- General Criteria: Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014
- General Criteria: Methodology: Industry Risk, Nov. 19, 2013
- General Criteria: Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
Related Research
- Industry Credit Outlook: China's Oil Majors Can Cope With Lower Oil Prices And Demand, April 23, 2025
- Commentary: U.S. Tariffs On Canada And Mexico Would Squeeze Some North American Refiners' Margins, March 3, 2025
- Commentary: Canadian Oil Producers Likely Resilient To Potential Tariffs, Feb. 18, 2025
- Industry Credit Outlook 2025: Oil and Gas, Jan. 14, 2025
- Industry Credit Outlook 2025: Midstream Energy, Jan. 14, 2025
| Primary Contacts: | Michael V Grande, New York 1-212-438-2242; michael.grande@spglobal.com |
| Simon Redmond, London 44-20-7176-3683; simon.redmond@spglobal.com | |
| Secondary Contacts: | Jacqueline R Banks, New York 212-438-3409; Jacqueline.Banks@spglobal.com |
| Colette R Durante, New York 1-212-438-1449; colette.durante@spglobal.com | |
| Mike Llanos, New York 1-212-438-4849; mike.llanos@spglobal.com | |
| Stephen Scovotti, New York 1-212-438-5882; stephen.scovotti@spglobal.com | |
| Minni Zhang, New York 1-2124381953; minni.zhang@spglobal.com | |
| Veronica Amendola, Buenos Aires 54-11-4891-2175; veronica.amendola@spglobal.com | |
| Ker liang Chan, Singapore 65-6216-1068; Ker.liang.Chan@spglobal.com | |
| Mikhail Davydov, Madrid 971-54-581-6323; mikhail.davydov@spglobal.com | |
| Luis Fabricio Gomez, Mexico City 52-5550814471; luis.fabricio.gomez@spglobal.com | |
| Jeremy Kim, Hong Kong 852-2532-8096; jeremy.kim@spglobal.com | |
| Taehee Kim, Hong Kong 852-25333503; taehee.kim@spglobal.com | |
| Galo Munoz, Buenos Aires 54-1148912157; galo.munoz@spglobal.com | |
| Yijing Ng, Singapore 65-6216-1170; yijing.ng@spglobal.com | |
| Edouard Okasmaa, Stockholm 46-84-40-5936; edouard.okasmaa@spglobal.com | |
| Mariana P Rossi, Buenos Aires ; mariana.rossi2@spglobal.com | |
| Research Contributor: | Sheryl Fernandes, CRISIL Global Analytical Center, an S&P Global Ratings affiliate, Mumbai ; |
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