Fitch: Valero unchanged

Fitch Ratings said it does not anticipate any ratings actions resulting from Valero Energy Corp.'s announced acquisition of Chevron's 220,000 barrels per day Pembroke refinery and related assets.

Valero's issuer default rating, credit facility, senior debt and Premcor Refining Group notes remain at BBB, the agency said.

The outlook is negative.

Under proposed terms of the deal, Valero will pay approximately $1.7 billion, comprised of $480 million for the refinery, $250 million for marketing and logistics assets and $1 billion for working capital and inventories, the agency added. The transaction is expected to close in the third quarter of 2011.

The ratings consider the company's strong liquidity, manageable near-term debt maturities, size, scale, solid financial flexibility and geographic diversity, the agency said.

The ratings consider lingering structural challenges that face North American refiners, including an elevated U.S. unemployment rate, an oversupply of refining global capacity, a growing renewable fuels mandate and future acquisition risk, the agency added.

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