Research Update: LOOP LLC Outlook Revised To Negative; 'BBB+' Ratings Affirmed

We expect LOOP's cash flows to decline more than we previously forecasted as a result of lower throughput volumes, and therefore leverage metrics will be elevated through 2020. Increased domestic crude production has decreased the demand for waterborne foreign crude, and the backwardated crude market has decreased the demand for storage, subsequently reducing throughput at LOOP. We are revising our outlook on the company to negative from stable. We are also affirming the 'BBB+' issuer credit rating and 'A-2' short-term rating on the company. We are also affirming our 'BBB+' issue-level rating on LOOP's senior unsecured debt. The negative outlook reflects our view that continued strong domestic production will lead to declining import volumes at LOOP, only partially offset by

...+ We expect LOOP's cash flows to decline more than we previously forecasted as a result of lower throughput volumes, and therefore leverage metrics will be elevated through 2020. + Increased domestic crude production has decreased the demand for waterborne foreign crude, and the backwardated crude market has decreased the demand for storage, subsequently reducing throughput at LOOP. + We are revising our outlook on the company to negative from stable. We are also affirming the '###+' issuer credit rating and 'A-2' short-term rating on the company. We are also affirming our '###+' issue-level rating on LOOP's senior unsecured debt. + The negative outlook reflects our view that continued strong domestic production will lead to declining import volumes at LOOP, only partially offset by export volumes and recovering storage volumes....

Research Update