...Valero Energy Corporation s (Valero) rati ngs are supported by the size, scale and diversity of its refineries, its significant leverage to heavy and sour crude oil economics and its reasonable leverage relative to its asset base. Primary concerns center on the demand impact that the global economic slump has had on refiner profitability in the form of lower crack spreads and decreased system utilization. While the recent drop in crud e oil prices may offer some relief on the demand front, Fitch expects a period of lower-than-normal utilization to persist in the near term, with North American -based gasoline demand especially weak. Additional bondholder concerns center on increased event risk, as the sharp drop in valuations across the refining sector and dislocation in the credit markets has reduced the viability of near-term asset sales, a potential source of incremental cash for Valero. At the same time, low asset prices have created potential acquisition targets....
