On December 17, 2020, S&P Global Ratings lowered its issuer credit rating on TPC Group Inc. to CCC from B- and its senior secured notes rating to CCC from B-. The downgrade reflects that TPC's credit measures will continue to be unsustainable as a result of weakened end-market demand and lost volumes from Port Neches, according to the ratings agency. This follows TPC's PNO plant explosion on November 27, 2019, which already led to uncertainty around the Company's EBITDA in 2020 and beyond. In addition, the Company's butadiene business has been impaired by the numerous auto plant shutdowns as a result of the COVID-19 outbreak in 2020, leading to weakened credit measures, which S&P Global expects to continue through 2021. In addition to the weakened credit measures, free cash flow generation remains negative and will continue to be pressured.

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