We anticipate that for the next 12 months, TPC Group Inc.'s operating performance will be weaker than we previously expected, primarily due to pricing pressures. In addition, TPC Group Inc.'s leverage has not improved over recent quarters, as was our expectation, and we believe that leverage is unsustainable in the current operating environment. As a result, we lowered our corporate credit rating to 'CCC+' from 'B-'.We also lowered the issue-level rating on the company's first-lien secured debt to 'CCC+' from 'B-.' Our recovery rating remains '4' (lower half of the 30%-50% range). The negative outlook reflects the refinancing risks associated with the company's late 2017 asset-based loan (ABL) maturity. We expect that the company's liquidity position may deteriorate once the
