S&P cuts Tesoro outlook to stable

Standard & Poor's said it revised the outlook on Tesoro Corp. to stable from positive and affirmed the ratings, including the BB+ corporate credit rating, on the company.

The outlook revision reflects the difficult market conditions in the company's West Coast markets, which will continue to pressure refining margins and credit measures over the next six to nine months, the agency noted.

S&P said that this has diminished the likelihood of an upgrade in the near term, despite expectations for improved second-quarter results, after a dismal first quarter.

According to the agency, the ratings on Tesoro are based on a satisfactory business risk profile that reflects the company's strong asset quality, traditionally favorable characteristics of its PADD V market and its ability to access multiple crude oil grades and sources.

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