Moody's downgrades Mapco Express

Moody's Investors Service said it downgraded Mapco Express, Inc.'s corporate family rating to B3 from B2 and its $50 million secured revolving credit facility due 2010, $70 million secured revolving credit facility due 2010 and $165 million secured term loan due 2011 to B3 (LGD3, 49%) from B2 (LGD3, 34%). The probability-of-default rating was affirmed at B3.

The outlook is negative.

The agency said the downgrade was prompted by weak operating performance, deterioration in the company's credit metrics and tight financial covenant headroom. For the last 12 months ended June 30, the adjusted debt-to-EBITDA ratio rose to 6.4 times.

The negative outlook reflects the possible further negative impact on operating results from unfavorable economic conditions, the uncertainty around gasoline profitability and increasing competitive pressures, Moody's said.

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