TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative - S&P Global Ratings’ Credit Research

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

TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative - S&P Global Ratings’ Credit Research
TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative
Published Dec 17, 2020
4 pages (2188 words) — Published Dec 17, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

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

  
Brief Excerpt:

...December 17, 2020 - 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...

  
Report Type:

Ratings Action

Ticker
TPCG
Issuer
TPC Group Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative" Dec 17, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/TPC-Group-Inc-Downgraded-To-CCC-From-B-On-Deteriorating-Credit-Measures-Outlook-Negative-2572487>
  
APA:
S&P Global Ratings’ Credit Research. (). TPC Group Inc. Downgraded To 'CCC' From 'B-' On Deteriorating Credit Measures; Outlook Negative Dec 17, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/TPC-Group-Inc-Downgraded-To-CCC-From-B-On-Deteriorating-Credit-Measures-Outlook-Negative-2572487>
  
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