Fitch upgrades Tesoro outlook
0Fitch Ratings on Thursday revised its outlook for San Antonio-based Tesoro Corp. to positive while maintaining its corporate debt ratings.
Tesoro’s issuer-default and senior-unsecured-notes ratings remain “BB,” which is below investment grade, and its secured-bank-facility rating remains “BB+”. The ratings affect about $1.93 billion in Tesoro debt.
The main reasons behind the outlook upgrade for the refining-and-marketing company include faster-than-expected improvement in financial performance and Tesoro’s access to West Texas Intermediate grades of crude oil at its North Dakota, Utah and Washington state refineries.
West Texas Intermediate prices have not risen as much as Brent crude, improving Tesoro’s profit margins, Fitch said.
The improved profit margins for Tesoro should help offset the slow economic recovery in California, a large market for the company, Fitch added.
Tesoro reported a first-quarter profit in May, citing better margins and higher production levels.
Its stock ended Thursday at $24.04 per share, down 38 cents for the day.
Similar Posts:
- Tesoro to spend $50 million to boost U.S. crude at Washington plant
- Crude prices stay flat a day after reserve announcement
- Gas Prices Expected to … Drop
- The Financial Landscape: Gas Is Falling; the Euro’s Failing; U.S. Bondholders, Start Bailing
- Zillow Proves Doubters Wrong With First Quarterly Report
No Comments Yet