S&P upgrades Mapco

Standard & Poor's said it raised its ratings on Mapco Express Inc., including its corporate credit rating to B from B-, and revised the outlook to stable from negative.

The agency said the rating action is based on Mapco's improved operating performance, modest debt reduction and restored covenant cushion under its secured credit facilities. Mapco recently amended its secured credit facility to allow for asset sales with proceeds to pay down a portion of its term loan.

S&P expects credit measures to improve further in the fourth quarter of 2008 as retail gas margins expand from a continued decline in oil prices. However, the agency noted that this benefit may be partly offset by the effects of reduced volume of gallons sold and declines in merchandise sales due to a steep pullback in consumer spending, and gas margins may return to levels more in line with historical levels in 2009.

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