Fitch upgrades Sunoco

Fitch Ratings said it upgraded Sunoco LP's long-term issuer default rating to BB+ from BB and the senior unsecured bonds co-issued by the partnership and Sunoco Finance Corp. to BB+/RR4 from BB/RR4. Fitch also affirmed the senior secured revolver rating at BBB-/RR1.

“The upgrade reflects that the partnership is in the process of decreasing leverage to 4x, the partnership's long-term leverage target policy. Fitch forecasts fiscal year 2022 leverage will be 4.2x (per Fitch's calculation method) and lower over the forecast period as a result of revolver balance paydown and incremental EBITDA from recent acquisitions,” the agency said in a press release.

Fitch noted it sees positive free cash flow in 2022 and 2023.

The outlook is stable.

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