The National Hurricane Center says Grace has strengthened into a hurricane just west of Grand Cayman.
Additional strengthening is possible before Grace makes landfall along the Yucatan Peninsula Thursday morning.
Land interaction is expected to weaken Grace, but the system is expected to once again become a hurricane over the Bay of Campeche towards a second landfall along the eastern coast of Mexico by the weekend.
Tropical Storm Henri continued its slow pace in the Atlantic.
The system is expected by reach hurricane strength by Friday and there is a chance Henri could have a greater impact to the northeastern U.S. and Canada.
"The spread in the models for Henri's future track is quite large, with some guidance as far west as Long Island and as far east as 62W longitude," said a Wednesday morning discussion on the storm. "Overall, the models continue to walk left each cycle, and the NHC track forecast has again been shifted in that direction."
There is currently no threat to southeast Louisiana from either Grace or Henri.