Conoco Bid Won't Affect Excel Paralubes; Project Debt Rating: A-/Stable/A-2.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's May 29, 2001--Conoco Inc.'s $6.3 billion bid for Gulf Canada Resources Ltd. would not affect the credit strength of Excel Paralubes despite the credit watch negative action taken on Conoco. Conoco, which owns 50% of the Excel Paralubes project, is also a key counterparty Counterparty The other participant, including intermediaries, in a swap or contract. to Excel Paralubes because it purchases 50% of the project's output. If the acquisition is successful, Conoco's total debt to total capital would likely spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. to about 60% (unadjusted for off-balance-sheet items and sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. intangible assets Intangible AssetAn asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ), which is highly inconsistent with Conoco's current single-'A'-minus debt ratings. The strength of the Excel Paralubes project continues to rely upon its competitive position as the low cost producer of base lube oil in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and the solid demand for its primary product. Standard & Poor's does not expect that Conoco's lube oil business will change if the acquisition bid is successful or if Conoco's debt ratings fall as a result of the acquisition.---CreditWire |
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