The rating on Sunoco Logistics Partners L.P. (SXL) is linked with that of Energy Transfer Partners L.P. (ETP), reflecting the significant amount of control ETP's management can exert over SXL, given its role as general partner. ETP can significantly influence SXL's business activities and financial policies, including setting distribution levels. Absent ownership constraints, SXL's stand-alone credit profile is slightly higher at 'BBB'. Following the $700 million debt issuance on Jan. 7, 2013, by SXL's subsidiary, Sunoco Logistics Partners Operations L.P., SXL has slightly more than $2 billion of balance-sheet debt. SXL's stand-alone credit quality is influenced by the stable cash flows that it generates from its pipeline and terminal assets and the entity's moderate financial leverage. Partly offsetting these strengths...
Companies mentioned in this report are:
- Sunoco Logistics Partners LP
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