S&P puts Giant Industries on positive watch

Standard & Poor's said it placed its B+ rating on Giant Industries Inc. on CreditWatch with positive implications, following the announcement that the boards of directors of Western Refining Inc. and Giant have unanimously approved a definitive merger agreement.

Under the agreement, Western will acquire all of the outstanding shares of Giant in a cash transaction valued at about $1.5 billion, including about $275 million of Giant's debt, the agency noted.

S&P added that the ratings on Giant continue to reflect its participation in the erratically profitable, capital-intensive refining and marketing segment of the petroleum industry, some diversification among its refineries and an improving financial profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.