S&P rates Tesoro notes BB+

Standard & Poor's said it assigned a BB+ issue-level rating to Tesoro Corp.'s two senior unsecured notes series, one due in 2017 and another due in 2022.

The agency also said it assigned a 3 recovery rating to both issues, indicating 50% to 70% expected recovery in a default.

Some of the proceeds will be used to pay down the $450 million of existing senior notes due 2015 and the $473 million senior notes due 2017, S&P said.

The outlook is stable, based on an opinion that at current debt levels, the ratings could sustain periods of subpar financial performance owing to cyclical factors, the agency said.

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