Fitch Revises Tesoro´s Outlook to Negative; Affirms IDR at ´BB+´

Fitch Ratings has affirmed Tesoro Corporation´s (TSO) Issuer Default Rating (IDR) and senior unsecured debt rating at ´BB+´, and revised the Rating Outlook to Negative. Fitch currently rates Tesoro´s debt as follows: --Senior unsecured notes ´BB+´; --Secured bank facility ´BBB-´. Tesoro´s ratings are supported by the scale and diversification benefits of its portfolio of seven refineries comprising 658,000 barrels per day (bpd) of crude capacity; its solid long-term competitive position on the supply-constrained West Coast market; and recent declines in crude oil and gasoline prices, which have offered a measure of relief to shell-shocked consumers in North America. Offsetting factors include: eroding refining fundamentals and weak cash generation seen in the first half of the year; high pending capital spending requirements... [read full story]