Moody's may downgrade Energy Partners

Moody's Investors Service said it placed Energy Partners, Ltd.'s ratings under review for possible downgrade.

Moody's also changed Stone Energy Corp.'s rating review for possible upgrade to a review with direction uncertain.

These actions follow Energy Partners' announcement that it made a counter offer to acquire Stone Energy for about $2 billion, including the assumption of about $563 million of debt, with debt accounting for approximately 65% of the acquisition cost.

Energy Partners' review for possible downgrade reflects the substantial increase in the company's financial leverage as a result of the acquisition, the agency said.

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