Fitch: EP Energy notes BBB-

Fitch Ratings said it assigned EP Energy, as' €600 million senior secured notes issue due 2018 a final rating of BBB-.

EP Energy's long-term issuer default rating is BB+/stable.

EP Energy's €600 million senior secured notes due 2018 and €500 million notes due 2019 are secured with pledges over shares and material assets in certain key operating companies. An upstream guarantee from all key subsidiaries (except for Mibrag, the lignite mine and Prazska Teplarenska) and a negative pledge covenant mitigate possible structural subordination.

Fitch said its estimate supports above average recovery expectations for the secured debt, which combined with the provided security and regulated nature of a significant part of earnings (heat generation, distribution and supply represents 38% of EBITDA) support a one-notch uplift for the secured debt instruments.

© 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.