Moody's: Legacy Reserves notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Legacy Reserves LP's proposed $250 million senior unsecured notes due 2021, which is being co-issued by Legacy Reserves Finance Corp.

The proceeds from the proposed notes offering will be used to repay borrowings under Legacy's secured revolving credit facility.

The outlook is stable.

"The proposed bond issuance will improve Legacy's liquidity profile and is a debt neutral transaction," Moody's vice president Gretchen French said in a news release.

"While Legacy benefits from lower operational risk than many of its E&P peers, with low exploration and development risk and a fairly predictable production profile, the B2 Corporate Family Rating remains restrained by the company's concentrated production profile and the risks associated with its MLP business model."

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