S&P affirms Mapco Express

Standard & Poor's said it affirmed its ratings, including the B+ corporate credit rating, on Mapco Express Inc.

The affirmation follows the company's announcement that it has signed a definitive agreement for the purchase of 107 retail fuel and convenience stores from Calfee Company of Dalton Inc. for about $65 million plus the cost of inventory, the agency noted.

S&P said it believes that credit metrics for Mapco Express, a wholly owned subsidiary of Delek U.S. Holdings Inc., will remain appropriate for the B+ rating given the company's plan to finance the acquisition with a combination of additional borrowings and cash from Delek's May 2006 IPO.

The outlook remains negative.

According to S&P, the ratings reflect Mapco Express's participation as a relatively small regional player in the competitive and highly fragmented convenience store industry, significant exposure to the volatility of gasoline prices and concentration in a few key markets in the Southeastern United States, where economic slowdowns can affect operations.

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