Fitch rates Sunoco notes BBB

Fitch Ratings said it expects to assign a BBB rating to Sunoco Logistics Partners Operations LP’s planned issuance of senior unsecured notes.

The proceeds from the offering are for repayment of revolver borrowings and for general partnership purposes.

Debt issued by Sunoco Logistics Partners Operations is guaranteed by Sunoco Logistics Partners LP, which has a long-term issuer default rating of BBB.

Sunoco Logistics Partners Operations also has a long-term issuer default rating of BBB, senior unsecured debt rating of BBB, senior unsecured bank facilities rating of BBB and short-term issuer default rating of F2.

The outlook is stable.

The ratings are supported by the company’s large diversified asset base that serves high-demand markets, stable, fee-based operations and supportive financial credit metrics, Fitch said.

The ratings also consider expectations for a temporary increase in leverage in 2014 as Sunoco Logistics funds growth with debt for expansion projects, along with its volatility and working capital needs associated with market-related operations, the agency said.

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