Fitch rates Sunoco Logistics notes BBB

Fitch Ratings said it assigned a BBB rating to Sunoco Logistics Partners LP’s senior unsecured notes.

The notes are to be issued by Sunoco Logistics Partners Operations LP and guaranteed by Sunoco Logistics Partners, Fitch said.

The proceeds are to be used to repay borrowings on its revolving credit facility and for general partnership purposes, which may include expanding capital expenditures, the agency said.

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

The ratings are supported by the large diversified asset base that serves high-demand markets, along with its stable fee-based operations that account for a majority of the partnership’s EBITDA, Fitch said.

The ratings also consider expectations for adjusted leverage to decrease during the current year following increases in 2015 and 2014 as significant spending pressured credit metrics, the agency said.

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