Fitch affirms Tesoro

Fitch Ratings said it has affirmed Tesoro Corp.'s ratings, with a negative outlook, as follows: issuer default rating at BB+; senior unsecured notes at BB+; and secured bank facility at BBB-.

Tesoro's ratings are supported by the scale and diversification benefits of its portfolio of seven refineries; its solid long-term competitive position in the supply-constrained California market; recent system upgrades, and reasonable year-to-date benchmark crack spreads for the West Coast, the agency said.

Offsetting factors to the rating include the margin impact of the collapse in light-heavy crude oil differentials on Tesoro's profits, especially at its deep conversion California refineries; the severity of the global downturn in refined product demand; Tesoro's still significant core capital spending requirements, including environmental, regulatory, and maintenance spending; and the potential impact of future environmental legislation, Fitch noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.