Tokyo (Platts)--5Dec2012/517 am EST/1017 GMT
Moody's Wednesday downgraded Japanese refiner Cosmo Oil's rating from Baa3 to Ba1, as the Chiba refinery shutdown has negatively affected the company's profitability, the ratings agency said. Baa3 is the lowest among 10 investment grades, while Ba1 is classified as speculative grade. Due to the shutdown, Cosmo Oil has incurred additional costs and losses -- costs related to providing alternative supplies to its customers and a decrease in the volume of exports, the ratings agency said.Article continues below...Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Moody's Wednesday downgraded Japanese refiner Cosmo Oil's rating from Baa3 to Ba1, as the Chiba refinery shutdown has negatively affected the company's profitability, the ratings agency said. Baa3 is the lowest among 10 investment grades, while Ba1 is classified as speculative grade. Due to the shutdown, Cosmo Oil has incurred additional costs and losses -- costs related to providing alternative supplies to its customers and a decrease in the volume of exports, the ratings agency said.
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Cosmo Oil's 220,000 b/d Chiba refinery in Tokyo Bay was forced to shut due to a massive earthquake on March 11, 2011, but restarted January 2012. The refinery was shut again in June 2012 due to an asphalt leak. The refiner plans to restart operations in January 2013.--Atsuko Kawasaki, atsuko_kawasaki@platts.com --Edited by Haripriya Banerjee, haripriya_banerjee@platts.com
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