Moody's affirms Mapco

Moody's Investors Service said it rated the proposed $50 million add-on to the secured revolving credit facility of Mapco Express, Inc. at B2 and affirmed the corporate family and existing bank loan ratings at B2.

The outlook is stable.

The agency also affirmed the company's $70 million (commitment prior to add-on) secured revolving credit facility at B2, $165 million secured term loan at B2 and corporate family rating at B2.

Affirmation of the corporate family rating at B2 reflects that the credit metrics and operational risks remain consistent with a B-rated retail company following the pending purchase of 43 convenience stores in and around Chattanooga, Tenn. and the associated increase in the revolving credit facility commitment by $50 million, the agency said.

Weighting down the overall rating with B characteristics are Mapco's aggressive financial policy, which includes debt-financed expansion, certain weak credit metrics for retained cash flow and free cash flow, the company's geographic concentration and the intensely competitive nature of the convenience store industry.

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