Moody's cuts Energy Partners view to negative

Moody's Investors Service said it affirmed Energy Partners Ltd.'s. B2 senior implied and B2 senior unsecured note ratings but moved the outlook to negative from stable.

Though Energy Partners' $150 million acquisition announced Friday will be funded by up to $90 million in balance sheet cash, the precautionary outlook change reflects the company's operating and unit cost profiles, pro-forma leverage, and high cost and execution risk of the acquisition.

Moody's said it estimates that 2005 up-cycle pre-capital spending cash flow will be strong, though sustaining capital spending is rising, and that up to $90 million of undrawn capacity may be available under a potential $150 million secured bank revolver currently under negotiation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.