LOOP LLC

The stable outlook on LOOP reflects our expectations that the company will maintain adjusted debt to EBITDA of 3.25x-3.5x in 2021 and 2022. We could consider a negative rating action if we think LOOP's leverage will remain above 3.5x on a sustained basis. This could occur if its competitive position deteriorates, which could happen if import volumes decrease without a material offset from export volumes. Although unlikely within the next year or two, we could consider a positive rating action if LOOP greatly improved its size, scale, and diversity and sustains debt to EBITDA below 3x. U.S. real GDP growth forecast of 6.7% in 2021 and 3.7% in 2022. Total throughput volumes of 1.0 million to 1.3 million barrels per

...We expect an increase in the Louisiana Offshore Oil Port's (LOOP) export volumes with the reversal of the Capline pipeline. The reversal of the Capline pipeline is scheduled to start in the first half of 2022. This bidirectional pipeline will provide greater optionality for shippers seeking to transport crude between the Midwest and the Gulf Coast and increase the supply of crude oil available to Louisiana refiners. We expect that this reversal would increase LOOP's export volumes, starting in 2022 such that exports increase to account for more than 20% of LOOP's total annual throughput volumes. Given the lack of direct connectivity between St. James and LOOP, we expect that Canadian barrels from the Capline Reversal would displace Gulf of Mexico (GOM) barrels transported from Clovelly to St. James, which would increase the GOM supply available for exports. A potential connection from St. James to Clovelly would depend on the utilization and capacity of existing pipeline infrastructure....

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