S&P cuts Marathon Petroleum

Standard & Poor's said it lowered the issue rating on Marathon Petroleum Corp.'s outstanding senior notes one-notch to BBB to reflect the stand-alone credit profile. In addition, the senior notes were removed from CreditWatch.

S&P assigned an A-2 short-term rating to the company's $2 billion commercial paper program.

Marathon Petroleum's outstanding notes were initially issued with a guarantee from Marathon Oil Corp. that was structured to terminate upon separation from Marathon Oil, the agency said. Given the elimination of the guarantee concurrent with the spin-off, S&P lowered the ratings on the notes.

The ratings on Marathon Petroleum reflect its satisfactory business risk profile and intermediate financial risk, the agency said.

The stable outlook reflects the expectation that the company will maintain adequate liquidity and that funded debt will not meaningfully increase beyond current levels, S&P said.

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