S&P: Valero unaffected

Standard & Poor's said the rating on Valero Energy Corp. (BBB/negative/--) would remain unchanged following the company's announcement that earnings per share for the third quarter will be about $2.50.

In S&P's view the two principal catalysts for a downgrade of Valero's credit ratings would be a collapse in refining margins as the company spends aggressively to meet new clean-fuels standards and debt-financed acquisitions.

S&P said it believes that Valero's lowered earnings, which still mark a record for the company's fiscal third quarter, would hardly qualify as a "collapse." Although gasoline margins have fallen significantly in recent weeks and merit watching, Valero's results are likely to be buttressed in the near term by a very wide light/heavy crude oil price differential and improved sour crude discounts.

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