SEMG - Buckeye Partners: Moody's Backs Off
Most know that I’ve been a long-running bear on Buckeye Partners (BPL), critiquing their investment in VTTI and calling for a distribution cut. In my opinion, this was going to be necessary due to an out-of-control leverage profile that risked their investment grade credit rating. Less than one year after that initial note and management has cut the cash payout by 40%, sold its equity interests in VTTI, and divested some non-core domestic pipeline and terminal assets. I view every single one of these moves as a major positive for the long run