Fitch cuts Tesoro

Fitch Ratings said it downgraded Tesoro Corp.'s issuer default rating to BB from BB+, senior unsecured notes to BB from BB+ and secured bank facility to BB+ from BBB-.

The outlook was revised to stable from negative.

The downgrades are based on weaker-than-expected operating results to date, evidence of a prolonged down-cycle in Tesoro's core California region given the state's high unemployment rate and expectations that high regional unemployment will linger, Fitch said.

The ratings also consider the impact of the shutdown of the Anacortes refinery since early April, which represents about 18% of Tesoro's total refining capacity, the agency said.

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