S&P Valero unaffected

Standard & Poor's said that damage related to Hurricane Rita to Valero Energy Corp.'s (BBB-/negative/--) 255,000 barrel per day Port Arthur, Texas, oil refinery would not affect the ratings on the company.

The refinery sustained significant flooding as a result of the storm, and immediate repair efforts are hampered by the lack of power in the area. The company expects the refinery to be offline for two to four weeks.

S&P said the continued strength of refining crack spreads should allow the company to generate sufficient cash flow from its remaining operations to more than meet S&P's cash flow expectations for 2005.

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