Moody's ups HollyFrontier

Moody's Investors Service said it raised the rating on Holly Corp.'s notes to Ba2 from B1 and raised the ratings on Frontier Oil Corp.'s notes to Ba2 from Ba3.

Frontier's notes have been assumed by Holly as part of the acquisition of Frontier by Holly and Holly has changed its name to HollyFrontier Corp., Moody's said.

The agency also said it upgraded HollyFrontier's corporate family rating to Ba1 from Ba3 and withdrew Frontier's corporate family rating.

Moody's also said it raised HollyFrontier's speculative-grade liquidity rating to SGL-1 from SGL-2.

The outlook is stable.

The ratings reflect the increased scale and diversification of the combined company, Moody's said.

The predecessor companies were managed conservatively and the agency said it expects the new HollyFrontier will continue to have low financial risk.

The ratings also consider the operational risks inherent in the pending integration of the two Tulsa refineries, Moody's added.

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