NEW YORK (S&P Global Ratings) Nov. 29, 2016--S&P Global Ratings today assigned its 'BB+' issue-level rating and '3' recovery rating to Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.'s proposed $750 million senior unsecured notes due 2025. The recovery rating of '3' indicates our expectation of meaningful (50% to 70%; higher end of the range) recovery if a payment default occurs. The partnership intends to use gross proceeds of the 2025 notes to repay amounts outstanding under its $1 billion dropdown credit facility, which amounts were used to fund a portion of consideration for the Alaska storage and terminalling asset acquisition and a portion of the consideration for the Northern California terminalling and storage asset purchase. San Antonio-based Tesoro Logistics
