S&P: TransMontaigne still on watch developing

Standard & Poor's said its ratings on TransMontaigne Inc. remain on CreditWatch developing following the announcement that TransMontaigne has entered into a long-term supply agreement with Morgan Stanley Capital Group Inc.

S&P said the ratings on TransMontaigne were placed on CreditWatch Sept. 23 following the announcement that the company's board of directors approved the formation of a master limited partnership for certain assets of the company.

While the seven-year supply agreement with Morgan Stanley Capital Group should add stability and somewhat reduce earnings volatility, S&P said it remains concerned about the ultimate business model and structure of TransMontaigne.

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