U.S. midstream energy master limited partnership Tesoro Logistics L.P. continues to expand its asset base and geographic footprint, with supportive long-term contracts and the absence of almost all commodity risk. We view the partnership as moderately strategic to its general partner, Tesoro Corp. We are raising the corporate credit rating on Tesoro Logistics to 'BB+' from 'BB' and its stand-alone credit profile to 'bb+' from 'bb'. At the same time, we are raising the rating on Tesoro Logistics' senior unsecured debt to 'BB+' from 'BB' and revising the recovery rating on this debt to '3' from '4', indicating expectations for meaningful (50%-70%, upper half of the range) recovery in a default. The stable outlook reflects our expectation that Tesoro Logistics
