Summary: Susser Holdings LLC
- ID: 1715020
- April 2011
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Corpus Christi, Texas-based Susser Holdings LLC reflect Standard & Poor's Ratings Services' expectation that credit measures will remain in line with the ratings, despite a contraction in fuel margins in 2011 to around 16.5 cents per gallon because of higher fuel costs. We consider its business risk profile to be weak based on its susceptibility to volatile fuel prices, substantial regional market concentration and thin operating margins because of strong price competition. The ratings also factor in the company's high financial leverage, which results in thin cash flow protection measures. Susser generates about 35% of its gross profit from fuel sales, with the remainder from merchandise sales. Consistently rising oil prices typically lead to tighter fuel margins...
Companies mentioned in this report are: Susser Holdings LLC
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