Moody's rates Susser notes B3

Moody's Investors Service said it affirmed Susser Holdings, LLC's corporate family rating of B1 and its speculative grade liquidity rating of SGL-2.

The outlook remains stable.

The agency assigned a B3 rating (LGD5, 79%) to the $30 million add-on to10 5/8 %senior unsecured notes Susser issued under its existing indenture in June.

The affirmation reflects Susser's solid operating performance through the third quarter, the agency said, as well as expectations that the company's operating performance will remain steady despite the current negative economic environment.

Susser's B1 corporate family rating is constrained by its moderately weak credit metrics and its aggressive financial policy that favors leverage, the agency said. The rating also reflects its regional concentration as well as its moderate scale.

Supporting the rating is Moody's opinion that the demand for motor fuel and convenience items will remain relatively unchanged during the current negative economic environment, the agency said.

The rating is also supported by Susser's moderate seasonality of cash flow, its significant portfolio of owned real estate and its good liquidity, Moody's said.

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