Fitch rates Centurion Pipeline loan BB

Fitch Ratings said it assigned Centurion Pipeline Co. LLC’s proposed $75 million incremental secured term loan a BB/RR1 rating. The facility will rank pari passu with all senior indebtedness and the maturity will be co-terminus with the outstanding term loan B.

Fitch also affirmed the long-term issuer default rating of Centurion at BB- and senior secured term loan and revolver at BB/RR1.

“Centurion's ratings take into account the company's limited size and scale and concentration risk from its primary counterparty, Occidental Petroleum Corp. (OXY; BB/ Stable). The ratings also reflect its elevated near-term leverage from historically low levels,” Fitch said in a press release.

The proceeds of the incremental term loan will be used to pre-fund capital expenditures, pay related fees and expenses and for general corporate purposes.

The outlook is stable.

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