S&P puts Holly Energy on positive watch

S&P said it placed all its ratings for Holly Energy Partners LP, including the BB+ issuer rating, on CreditWatch with positive implications.

The positive watch follows HF Sinclair Corp. (DINO) announcing it plans to buy all of HEP’s common units it does not already own, the agency said. Dino already owns about 47% of the common units.

“We would view this transaction as supportive of the company's credit quality because it will streamline its corporate structure and reduce some cash leakage at HEP associated with its status as a public entity. Our rating on DINO is unchanged because it reflects our view of the enterprise on a consolidated basis, including HEP. As such, it is our expectation at transaction close that we would raise our ratings on HEP to equalize them with our ratings on DINO,” S&P said in a press release.

S&P said it anticipates raising HEP’s ratings to equalize them with its DINO ratings. It plans to resolve the positive watch when the deal closes.

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