VALERO ENERGY <VLO> DEBT UPGRADED BY MOODY'S
Moody's Investors Service Inc said it
upgraded Valero Energy Corp's 120 mln dlrs of debt.
    Moody's cited an improved leverage position that will
result from Valero's sale of its Valero Natural Gas subsidiary
to Valero Natural Gas Partners L.P., the partial sale of units
of that partnership to the public, and the simultaneous sale of
first mortgage bonds to institutional investors.
    Raised were Valero-backed tax-exempt economic development
revenue bonds of Vincennes, Ind, to Baa-3 from B-1, Valero's
subordinated debt to Ba-1 from B-2 and depository preferred
stock to Ba-1 from B-2. 
 Reuter
