The upgrade recognizes HEP’s growth and the company’s continued strategic importance to HollyFrontier Corporation (HFC, Baa3 stable), which owns its general partner interest and is its refining parent. HEP provides critical midstream logistics to HFC’s operations and also plays an important role as a growth and financing vehicle for its midstream operations. HEP’s Ba2 CFR reflects its stable cash flow from pipeline, terminal, and tankage assets supported in large part by long-term favorable take-or-pay contracts with HFC that have limited commodity risk.
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