S&P might raise Western Refining

S&P said it placed its B+ corporate credit ratings on Western Refining Inc. and operating subsidiary Northern Tier Energy LP on CreditWatch with positive implications.

The agency also placed its B+ senior secured rating and B senior unsecured rating on Western and BB- senior secured rating on Northern Tier on CreditWatch with positive implications.

At the same time, S&P placed its B corporate credit and senior unsecured issue ratings on MLP Western Refining Logistics LP on CreditWatch with positive implications.

"The CreditWatch listing reflects our expectation that we will raise the ratings on Western and Northern Tier in line with those of Tesoro," S&P credit analyst Michael Grande said in a news release.

"We view the increased scale and diversity the transaction provides as partly offset by somewhat weaker credit measures."

Western Refining will become a wholly owned subsidiary of Tesoro and its operations will be integrated with Tesoro's, with Tesoro assuming Western's debt of about $1.7 billion.

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