Standard & Poor's Ratings Services said today it also affirmed its 'BBB' long-term corporate credit rating on Caltex Australia.

S&P said free operating cash flow derived principally from tight capital expenditure controls, and improved working capital and cost management enabled the company to reduce its net debt to $954 million in fiscal 2002, exceeding its targeted debt level of $1,075 million.

S&P added Caltex maintains a leading market position, with about 28% of the Australian refining, marketing, and distribution industry, supported by a strong retail network covering all Australian states.