S&P affirms Texas Petrochemicals, gives loan B+

Standard & Poor's said it affirmed its B+ corporate credit rating on Texas Petrochemicals LP and its B+ bank loan rating and recovery rating of 2 on Texas Petrochemicalss proposed first-lien term loan facility.

The agency noted that the term loan facility has been reduced to $210 million from $280 million, to provide for the addition of a proposed $70 million prefunded synthetic letter of credit facility.

S&P said it also assigned its B+ rating and 2 recovery rating to the company's $70 million prefunded synthetic letter of credit facility.

The ratings reflect Texas Petrochemicals narrow product range, concentration of revenue and earnings in a few customers and products, potential for cyclicality of some earnings and uncertainty in demand growth in key markets, according to the agency.

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