S&P ups Valero to stable

Standard & Poor's said it revised the outlook on Valero Energy Corp. to stable from negative and affirmed the BBB corporate credit rating and BBB senior ratings on Valero's issues.

The outlook is stable.

Valero's financial performance is benefitting from favorable refining margins on distillate products as well as from increased discounts on heavy crude oil feedstocks, helping to offset continuing pressure on gasoline margins, S&P said.

The ratings consider the company's longer range profit potential given the challenges Valero will face in coping with industry-wide excess production that could well be exacerbated by new capacity scheduled to become operational, the agency said

The ratings on Valero reflect its satisfactory business risk profile and intermediate financial risk, the agency added.

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