Moody’s says Sunoco’s plans to spin-off division does not affect its credit ratings

Moody’s: Sunoco debt ratings unchanged

NEW YORK — Moody’s Investors Service said Thursday that Sunoco’s plan to spin off its metallurgical coke manufacturing operations will not affect the petroleum refiner’s investment-grade ratings on its long-term debt and commercial paper.

The rating outlook remains negative.

Sunoco said Wednesday that SunCoke Energy will be split from the company in the first half of 2011 to boost the values of its shares. Coke is a key ingredient used to make steel. The company provides coke for steel manufactures in the U.S. and Brazil.

Moody’s said it will monitor the spin-off and its affect on the company’s cash flow and diversification of operations. The agency is still evaluating Sunoco’s efforts to reduce its operational profile, cost structure and debt levels.

Shares of Sunoco slipped 3 cents to end at $34.24.