Moody’s gives Western Refining notes B2

Moody's Investors Service said it assigned Western Refining Logistics, LP a B1 corporate family rating, a B3 rating to its proposed offering of $300 million senior unsecured notes due 2023 and an SGL-3 speculative grade liquidity rating.

The notes are co-issued by WNRL Finance Corp.

The outlook is stable.

Proceeds from the proposed notes offering will be primarily used to repay borrowings under its revolving credit facility, which was drawn last October to fund a drop-down acquisition of the Wholesale Fuels and Crude Trucking businesses from its parent company, Western Refining, Inc. (B1 stable).

"Western Refining Logistics' ratings reflect its strategic importance to its parent company and general partner (GP) interest owner, Western Refining, as well as its contracted, fee-based revenues with WNR supported by minimum volume commitments over a long-term time horizon," Moody's vice president Amol Joshi said in a news release.

"Despite its small scale, Western Refining Logistics has foreseeable growth plans through future drop-downs of logistics assets owned by its parent."

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