Calumet Specialty Products downgraded at RBC

Calumet Specialty Products (CLMT -2.6%) is downgraded to Sector Perform from Outperform with a $31 target price, down from $36, at RBC Capital, which sees weak distribution coverage in 2013, exacerbated by high turnaround costs, and unlikely distribution growth in the near-term.

The firm thinks CLMT has liquidity to support sub-par distribution coverage, which should improve next year as projects come online and turnaround costs abate, but sees CLMT keeping a discount to MLP peers as the likelihood of growth remains limited.

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