Fitch upgrades LOOP

Fitch Ratings said it upgraded LOOP LLC's long-term issuer default rating and senior unsecured rating to A- from BBB+ and its senior secured debt backed by throughput and deficiency (T&D) agreements to A from A-.

Fitch also said it affirmed LOOP's short-term issuer default rating at F2.

The outlook is stable.

Previously, Fitch had assigned a positive outlook on LOOP's ratings, given the improving credit profile.

Now, the agency said it expects LOOP's leverage to remain less than 3x in forecasted years. This improvement is expected to be driven by stable transportation and storage volumes, barring any major spending and borrowings, Fitch said.

The agency said it does not expect Hurricane Harvey to cause any major operational disruptions or have a material financial impact on LOOP.

In the past, the company did not experience any significant operational issues or financial setbacks during previous severe weather events, such as Hurricane Katrina in 2005, Fitch said.

The ratings also consider LOOP's strategically located assets in the Gulf Coast, the agency said.

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