Research Update: Sunoco L.P. Ratings Affirmed, Placed On CreditWatch Positive On Announced Acquisition

On Jan. 22, 2024, Sunoco L.P. (Sunoco) announced that it intends to acquire NuStar Energy L.P. (NuStar). This follows the recent announcements of the sale of West Texas Assets to 7-Eleven Inc. (7-Eleven) and the acquisition of Zenith Energy Netherlands Amsterdam B.V. We affirmed all of our existing ratings on Sunoco, including our 'BB' issuer credit rating, 'BBB-' issue-level rating on its senior secured debt, and 'BB' issue-level rating on its senior unsecured debt. At the same time, we placed our issuer credit rating on Sunoco and issue-level rating on its senior unsecured debt on CreditWatch with positive implications. The CreditWatch with positive implications reflects the likelihood that we could raise our issuer credit rating and senior unsecured issue-level rating

...- On Jan. 22, 2024, Sunoco L.P. (Sunoco) announced that it intends to acquire NuStar Energy L.P. (NuStar). This follows the recent announcements of the sale of West Texas Assets to 7-Eleven Inc. (7-Eleven) and the acquisition of Zenith Energy Netherlands Amsterdam B.V. - We affirmed all of our existing ratings on Sunoco, including our '##' issuer credit rating, '###-' issue-level rating on its senior secured debt, and '##' issue-level rating on its senior unsecured debt. - At the same time, we placed our issuer credit rating on Sunoco and issue-level rating on its senior unsecured debt on CreditWatch with positive implications. - The CreditWatch with positive implications reflects the likelihood that we could raise our issuer credit rating and senior unsecured issue-level rating on Sunoco by one notch around close of the merger with NuStar. We expect to resolve the CreditWatch placements around close of the proposed transaction, which we expect will occur in the second or third quarter...

Research Update