S&P affirms VeraSun

Standard & Poor's said it affirmed the B+ corporate credit rating on VeraSun Energy Corp. and removed the rating from CreditWatch with negative implications.

The outlook is negative.

The recovery rating on VeraSun's $210 million senior secured notes was revised to 4 from 3.

S&P said the rating reflects improved market crush spreads, improved liquidity and some geographic diversification.

The agency said the rating also reflects some startup delays, volatile margins, working capital needs that may eat into liquidity and political resistance to ethanol continues.

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