S&P rates Mapco loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Mapco Express Inc. and assigned its B+ bank loan rating to the company's new $165 million term loan due 2011 and $40 million revolving credit facility due 2010. The recovery rating on the loan is 2.

The outlook is negative.

Proceeds from the credit facilities will be used to partly fund a dividend to Delek US Holdings Inc., the parent company, and to refinance existing debt.

S&P said the ratings reflect Mapco'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 market concentrations in a few key markets in the Southeastern United States, in which economic slowdowns can impact operations. The company also is highly leveraged and has a relatively small EBITDA base.

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