Fitch rates Valero IDR, debt BBB-

Fitch Ratings said it assigned BBB- long-term issuer default and senior unsecured debt ratings to Valero Energy Partners LP (VLP).

The outlook is stable.

Additionally, the agency assigns a BBB- rating to the proposed 10-year note offering.

The notes will rank pari passu with the partnership's existing and future senior unsecured debt.

Proceeds from the partnership's inaugural bond offering are to be used to reduce revolver borrowings and for general partnership purposes.

Fitch said the ratings reflect the size, scale, earnings and cash flow stability of the master limited partnership, as well as, Valero Energy Partners’ relation to its sponsor Valero Energy Corp. (long-term issuer default rating BBB, stable).

The ratings are supported by Valero Energy Partners’ planned conservative capital structure as Fitch expects the partnership to continue to operate with reasonable leverage metrics and strong distribution coverage.

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