Moody’s lowers TPC to negative

Moody’s Investors Service said it affirmed TPC Group Inc.’s B3 corporate family rating and B3-PD probability of default rating and revised its outlook to negative.

Moody’s also said it affirmed the B3 rating on TPC’s $805 million senior secured notes due 2020.

The negative outlook reflects that the worsened low oil- and gasoline-price environment will be protracted and delay improvement in earnings in its C4 business segment and performance products segment, the agency said.

Moody’s said it expects modest improvement in earnings performance in 2016 through reduced spending and increased reliability of the dehydrogenation facility.

But due to margin compression profitability, earnings performance will not meaningfully increase without oil- and gasoline-price increases, the agency said.

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