Moody’s shifts Marathon Petroleum, MPLX views to negative

Moody’s Investors Service said it changed Marathon Petroleum Corp.’s outlook to negative from stable, while affirming its Baa2 senior unsecured rating. The agency also changed MPLX LP’s outlook to negative from stable, while affirming its Baa2 senior unsecured rating.

The change in outlooks comes following an announcement that Marathon plans to spin off its Speedway motor fuels retail and convenience store operation to shareholders, and that it has formed a special committee of its board to evaluate potential value-creating options for its midstream business, including MPLX.

“MPC’s negative outlook reflects the company’s decision to separate its more stable Speedway company-owned retail store operations into a newly independent, publicly-traded company, as well as potential changes in the structural and organizational relationship with MPLX, which is controlled by MPC through its ownership of MPLX’s general partner. Furthermore, MPC announced the retirement of its chairman and CEO, effective in 2020’s second quarter, without naming a successor, which adds to the strategic uncertainty for both companies,” said Moody’s in a press release.

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