S&P rates Holly notes BB

Standard & Poor's said it assigned a BB corporate credit rating to Holly Corp. and a BB senior unsecured rating and 3 recovery rating to Holly's proposed $200 million senior note offering.

The outlook is stable.

Proceeds are expected to help fund the announced $65 million acquisition of Sunoco's refinery, as well as estimated spending of $150 million to upgrade Tulsa to produce ultra-low sulfur diesel.

"The ratings on Dallas-based Holly Corp. reflect the challenges it faces as a small, independent oil refiner with limited cash flow diversification among three refineries," S&P analyst Paul Harvey said in a statement.

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