Fitch affirms Valero Energy

Fitch Ratings said it has affirmed the debt ratings of Valero Energy Corp., including its senior unsecured debt at BBB-, unsecured credit facilities at BBB-, and mandatory convertible preferred securities at BB+.

The outlook is stable.

Fitch said the affirmation follows the company's announcement that it has agreed to acquire the 315,000 barrels per day Aruba refinery and related marine, bunkering and retail assets from El Paso Corp. for $715 million (including $250 million for inventories).

Valero plans to finance the Aruba acquisition through an issuance of about 6.8 million shares of common stock to fund 50% of the transaction and cash or revolver borrowings for the remaining 50%. Closing on the transaction is expected by the end of February.

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