January 15, 2016 Comments (0) Blog, Securities Fraud

Plains All American Pipeline Receives Negative Outlook

As low crude oil prices continue to remain depressed, credit ratings for many debt securities tumble.

According to Street Insider, Standard & Poor’s Ratings Service revised the outlook for Plains All American Pipeline (NYSE: PAA) from stable to negative. The designation “negative” typically suggest a potential downgrade. S&P affirmed the BBB+ for Plains All American Pipelines.

While a BBB+ suggests Plains currently has the means to meet its financial commitments and considered medium credit quality, they are more likely to be in a weakened position to meet financial commitments if faced with adverse economic conditions.

Standard & Poor’s credit analyst Michael Grande wrote, “The rating action reflects that Plains’ credit measures will be weaker than we previously expected mainly due to increased competition for transportation and gathering services and lower crude oil pricing differentials.”

According to their website, Plains All American Pipeline LP is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids, natural gas and refined products.

In recent years master limited partnerships have become a popular way to structure energy oil and gas investments. MLP’s are extremely complex and risky investments. Although MLPs are publicly traded, they generate substantial fee’s and commissions for Wall street. Unfortunately this may be way so many unsuspecting investor were ill advised to purchase MLP’s like Plains American Pipeline.

Read more about The White Law Group’s investigating the liability that brokerage firms and financial advisors may have for improperly recommending MLP investments here.

If you suffered losses investing Plains All American Pipeline LP or another MLP and would like to discuss your litigation options, please call The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.