Research Update: TPC Group Inc. Upgraded To 'B-' From 'CCC+' On Sustained Operational And Financial Improvements; Outlook Stable

TPC Group Inc. continues to improve plant operating rates following an extended turnaround, and volumes have improved driven by new ethylene capacity coming on stream in the U.S. Gulf Coast. We are raising our issuer credit rating on TPC to 'B-' from 'CCC+' as a result of the company's improved credit metrics and positive free cash flow generation at the end of the third quarter of 2018, and our expectations for continued improvement in production volumes, profitability, and cash flow generation. At the same time, we are raising the issue-level rating on TPC's first-lien secured debt to 'B-' from 'CCC+'. The recovery rating remains '4'. The stable outlook reflects our view that TPC will remain free cash flow positive for

...+ TPC Group Inc. continues to improve plant operating rates following an extended turnaround, and volumes have improved driven by new ethylene capacity coming on stream in the U.S. Gulf Coast. + We are raising our issuer credit rating on TPC to 'B-' from '###+' as a result of the company's improved credit metrics and positive free cash flow generation at the end of the third quarter of 2018, and our expectations for continued improvement in production volumes, profitability, and cash flow generation. + At the same time, we are raising the issue-level rating on TPC's first-lien secured debt to 'B-' from '###+'. The recovery rating remains '4'. + The stable outlook reflects our view that TPC will remain free cash flow positive for the next 12 months on additional ethylene capacity coming on stream in the U.S. combined with its restructured C4 margin share contracts and significant facility improvements driving improved volumes....

Research Update