LOOP LLC is the sole offshore oil port operator for deep-draft oil tankers in the Gulf of Mexico. Increasing domestic onshore crude oil production and Canadian imports are displacing LOOP's traditional offloading business. Meaningful crude oil storage capacity with access to several refineries in the U.S. enhance the company's competitive position. Strong debt service coverage ratios. Modest capital spending requirements. LOOP generally distributes most of its free cash flow to its owners. The stable outlook on the ratings reflects our expectations that throughput and storage volumes will remain relatively stable and LOOP will maintain debt to EBTIDA of 3x to 3.5x. We could lower the ratings if LOOP's competitive position worsens, operating performance deteriorates, or financial leverage increases above 4x
