S&P cuts Maxum Petroleum to B

Standard & Poor's said it lowered Maxum Petroleum Operating Co. to B from B+.

The outlook is stable.

The downgrade follows a reassessment of the treatment of the convertible subordinated notes and convertible participating preferred stock held at the company's parent, Maxum Petroleum Inc., S&P said.

The downgrade also reflects a view that the company is unlikely to maintain credit measures supportive of a B+ rating in light of its aggressive financial policy and acquisitive nature, the agency said.

The ratings reflect the company's thin margins, soft economic activity levels and significant working capital needs, S&P added.

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