S&P: Giant Industries unaffected

Standard & Poor's said that Giant Industries Inc.'s (B+/positive/--) ratings would be unaffected by the announcement that it intends to sell 1 million shares of common stock through Banc of America Securities LLC for compensation of roughly $56 million, based on its Sept. 12 closing price of $56.09 per common share.

Proceeds from the offering will be used to fund the recent acquisitions of Dial Oil Co. and a crude oil pipeline from Texas-New Mexico Pipe Line Co., and for future acquisitions.

Although favorable for credit quality, such actions are consistent with S&P's expectations as reflected in the company's current positive outlook. Positive rating actions are possible over the medium term, if Giant can continue to strengthen its balance sheet while meeting clean-fuels spending requirements, the agency said.

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