Tuesday, April 28, 2015

Moody's calls Delta refinery deal 'credit positive'

Delta Air Lines deal with Berger of Texas on behalf of Delta´s oil refinery in Trainer, Delaware County was applauded by the ratings agency.
Delta Air Lines deal with Berger of Texas on behalf of Delta's oil refinery in Trainer, Delaware County was applauded by the ratings agency.

Delta Air Lines' five-year contract with Bridger L.L.C., in Texas, for delivery of 65,000 barrels a day of domestic crude to Delta's refinery in Trainer, Delaware County, is "credit positive" and will save Delta about $110 million in year in running the refinery, Moody's Investors Service said Monday.

Moody's also noted that American Airlines' announcement of a $1 billion share buyback, 10-cent per share dividend to shareholders, and reduction of $2.8 billion of debt was "credit positive." Moody's called it a "measured first step" in deploying $9.5 billion in cash that American has after bankruptcy restructuring and the merger with US Airways.

Linda Loyd

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