The ratings on LOOP LLC reflect its dominant market share as operator of the Louisiana Offshore Oil Port--the sole deepwater offshore port in the Gulf of Mexico--and the company's relatively stable and predictable cash flows. Weaknesses include the company's aggressive financial leverage and competition from short hauls and lightering (ship-to-ship transfer of oil). Further enhancing the ratings on LOOP are the company's throughput and deficiency (T&D) agreements with its owners, all large, solidly investment-grade oil companies. As of Sept. 30, 2007, LOOP had approximately $585 million in debt, adjusted for operating leases and postretirement benefit obligations. Standard&Poor's Ratings Services considers LOOP's business profile as satisfactory. LOOP owns and operates a deepwater oil port 18 miles off the Louisiana
