S&P: Giant unaffected

Standard & Poor's said Giant Industries Inc.'s (B+/positive/--) ratings would be unaffected by the announcement that it intends to sell one million shares of common stock to Banc of America Securities LLC for compensation of roughly $25 million, based on its March 22 closing price.

Proceeds from the offering will be used to redeem a portion of Giant's 11% senior subordinated notes due 2012.

Although favorable for credit quality, such actions are consistent with S&P's expectations as reflected in the current positive outlook on Giant.

Positive rating actions are possible over the medium term, according to S&P, if Giant can continue to strengthen its balance sheet while meeting clean-fuels spending requirements.

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