Fitch: Valero outlook negative

Fitch Ratings said it revised Valero Energy Corp.'s outlook to negative from stable and affirmed its issuer default rating, unsecured credit facility and senior unsecured debt at BBB.

The revised outlook stems from Valero's weak year-to-date financial performance and the lack of signs of a turnaround in downstream fundamentals heading into 2010, which may keep Valero's credit metrics weak for an extended period, according to the agency.

For the 12 months ending Sept. 30, Valero had a debt-to-EBITDA ratio of 2.8x.

Valero's ratings are supported by the size, scale and the geographic diversity of its refineries, its leverage to heavy and sour crude oil economics and reasonable financial leverage, the agency said.

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