UPDATE: Credit Suisse Downgrades NuStar Energy to Underperform, Lowers PT

In a report published Friday, Credit Suisse downgraded its rating on NuStar Energy LP

from Outperform to Underperform, and lowered its price target from $64.00 to $44.00. Credit Suisse noted, “The deterioration of NS' asphalt and fuels marketing segment continues to surprise to the downside and more than offset the growth in its fee-based storage and transportation segments. As a result, we do not believe NS will be able to cover its distribution in 2013 and beyond. Combined with an over-levered balance sheet, we believe the sustainability of NS' distribution is now at risk. Our $44 target price (from $64) reflects this risk and provides for a -3% total return over the next twelve months.” NuStar Energy closed on Thursday at $49.75.