Research Update: TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative

TPC Group Inc. still faces challenges related to its currently idled Port Neches (PNO), Texas, facility. In addition, the company's operating performance has been impaired by the COVID pandemic. As a result, TPC's volumes and earnings have declined significantly. This has led to a deterioration in debt leverage, which S&P Global Ratings believes is currently unsustainable. Additionally, the company faces refinancing risk in 2021. Therefore, we are lowering our issuer credit rating on TPC Group Inc. to 'CCC' from 'B-'. The outlook is negative. At the same time, we are lowering our rating on the company's senior secured notes to 'CCC' from 'B-'. The recovery rating remains '4', indicating our expectation of average (30%-50%; rounded estimate: 30%) recovery in the

...- TPC Group Inc. still faces challenges related to its currently idled Port Neches (PNO), Texas, facility. In addition, the company's operating performance has been impaired by the COVID pandemic. As a result, TPC's volumes and earnings have declined significantly. - This has led to a deterioration in debt leverage, which S&P Global Ratings believes is currently unsustainable. Additionally, the company faces refinancing risk in 2021. - Therefore, we are lowering our issuer credit rating on TPC Group Inc. to '###' from 'B-'. The outlook is negative. - At the same time, we are lowering our rating on the company's senior secured notes to '###' from 'B-'. The recovery rating remains '4', indicating our expectation of average (30%-50%; rounded estimate: 30%) recovery in the event of a payment default. - The negative outlook reflects economic uncertainty around the economy, uncertainty around the timing of potential insurance proceeds, and the company's upcoming term loan maturity in August 2021....

Research Update