NEW YORK, Feb. 5 /PRNewswire/ -- Standard & Poor's said today that an
error in financial statements at Excel Paralubes (A-/Stable/A-2) going back to
1997 would not affect the project's historical credit strength. Conoco Inc.'s
(BBB+/Watch Pos/A-2) joint venture partner in the project, Pennzoil-Quaker
State Co. (BB+/negative/--) announced yesterday in a filing with the
Securities and Exchange Commission that it would reduce net income in 2000 and
1999 by a small amount due to a measurement problem in allocating base lube
oil products between the two partners. Because the problem affects the
allocation of the product and not the price received for total production, the
error does not affect the calculation of debt service coverage ratios or the
project's credit strength. Excel Paralubes, which is staffed and operated by
Conoco, is a project-financed 20,000 barrel per day, base lube oil plant
located adjacent to Conoco's refinery in Lake Charles, La.
SOURCE Standard & Poor's
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