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Author	Topic: Moody's downgrades Tesoro to Negative over BP Risk	Post a Reply Back to Topics

blargolis Rookie Author Riverside Posts:49 Points:1,174,805 Joined:Aug 2006	Message Posted: Aug 14, 2012 3:08:46 PM Ignore blargolis Report Abuse Moody's Investors Service lowered its outlook on Tesoro Corp. (TSO) to negative from stable, pointing to the financing risk associated with the independent refiner's acquisition of BP PLC's (BP, BP.LN) southern California refining and marketing business. Moody's affirmed Tesoro's corporate family rating at Ba1, one level into junk territory. Tesoro on Monday unveiled plans to buy BP's Carson refinery and related assets for about $2.48 billion, a deal the company said will enhance its efficiency. The acquisition is expected to close before the middle of 2013. Visit Wall Street Journal for full article

blargolis

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Message Posted: Aug 14, 2012 3:08:46 PM

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Moody's Investors Service lowered its outlook on Tesoro Corp. (TSO) to negative from stable, pointing to the financing risk associated with the independent refiner's acquisition of BP PLC's (BP, BP.LN) southern California refining and marketing business.

Moody's affirmed Tesoro's corporate family rating at Ba1, one level into junk territory.

Tesoro on Monday unveiled plans to buy BP's Carson refinery and related assets for about $2.48 billion, a deal the company said will enhance its efficiency. The acquisition is expected to close before the middle of 2013.

Visit Wall Street Journal for full article

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alterman156 Champion Author New York Posts:7,470 Points:1,553,750 Joined:Dec 2008	Message Posted: Aug 15, 2012 1:46:01 AM Ignore alterman156 Report Abuse Tesoro should be reduced to junk band status.
pumaMN Champion Author Minnesota Posts:1,543 Points:334,965 Joined:Aug 2011	Message Posted: Aug 14, 2012 8:18:34 PM Ignore pumaMN Report Abuse ok
YumaFellow Champion Author Arizona Posts:1,270 Points:618,595 Joined:Jan 2011	Message Posted: Aug 14, 2012 7:57:08 PM Ignore YumaFellow Report Abuse Would be nice to read the whole article without a subscription. That said, this will raise gas prices because Tesoro will have to get back its rather high purchase price, and the absence of a competitor will make that easier to accomplish. So the consumer will wind up paying.
qwerty17 Champion Author New Jersey Posts:3,635 Points:1,113,900 Joined:Oct 2009	Message Posted: Aug 14, 2012 7:46:48 PM Ignore qwerty17 Report Abuse time to buy tesoro.
bandannaman Champion Author New Jersey Posts:1,849 Points:365,610 Joined:Dec 2010	Message Posted: Aug 14, 2012 7:30:07 PM Ignore bandannaman Report Abuse yeah
Meowmy Champion Author Florida Posts:1,293 Points:347,255 Joined:Jan 2011	Message Posted: Aug 14, 2012 6:36:39 PM Ignore Meowmy Report Abuse Not a good sign.
lesndave Champion Author Texas Posts:3,022 Points:697,380 Joined:May 2011	Message Posted: Aug 14, 2012 5:54:27 PM Ignore lesndave Report Abuse hmmm
Juicy1177 Veteran Author Gary Posts:336 Points:147,500 Joined:Feb 2012	Message Posted: Aug 14, 2012 5:34:18 PM Ignore Juicy1177 Report Abuse ???
RONALD777 Champion Author Houston Posts:2,417 Points:359,730 Joined:Nov 2007	Message Posted: Aug 14, 2012 5:33:47 PM Ignore RONALD777 Report Abuse I think Tesoro will do just fine!
Nicoalbum Champion Author Ottawa Posts:6,001 Points:1,185,220 Joined:Jan 2010	Message Posted: Aug 14, 2012 5:23:14 PM Ignore Nicoalbum Report Abuse Kudos Moody!
wildddkattt80 Champion Author Phoenix Posts:2,143 Points:432,145 Joined:Jun 2011	Message Posted: Aug 14, 2012 5:20:27 PM Ignore wildddkattt80 Report Abuse And?
graceman Champion Author Baltimore Posts:4,968 Points:1,158,725 Joined:Jun 2008	Message Posted: Aug 14, 2012 4:13:20 PM Ignore graceman Report Abuse Very risky
Sneakers55 Champion Author Houston Posts:51,253 Points:2,140,250 Joined:Nov 2005	Message Posted: Aug 14, 2012 3:27:40 PM Ignore Sneakers55 Report Abuse Yet another article from the WALL STREET JOURNAL where a subscription is required to read the full article. At least there's more text in the GasBuddy snippet than there was in the article preview.
blargolis Rookie Author Riverside Posts:49 Points:1,174,805 Joined:Aug 2006	Message Posted: Aug 14, 2012 3:19:34 PM Ignore blargolis Report Abuse Normally this is boring stuff, but I post this as an example where Wall Street is punishing a company who is actually interested in producing gasoline. The speculators and the Street love the huge spike in profit as the oil refineries neglect, defer, or deploy strategic incompetence to drop the supply of refined gas. Every time there is a surplus of fuel or a downward trend in prices, refineries seem to always have the perfectly timed "whoops" that ensures prices rocket up. Nobody wants to actually EARN money the old way, which is making a product or selling a real service. Oil stocks are only good if they can pump up profit while laying off employees and shuttering plants.