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Moody’s lowers Southcross
Moody’s Investors Service said it downgraded Southcross Energy Partners, LP’s corporate family rating to B2 from B1, probability of default to B2-PD from B1-PD and senior secured term loan rating to B2 from B1.
The outlook also was revised to negative from stable.
The company’s SGL-3 speculative grade liquidity rating also was affirmed.
Moody’s also downgraded the ratings of Southcross Holdings Borrower LP’s ratings, including its corporate family rating to Caa1 from B2, probability of default rating to Caa1-PD from B2-PD and senior secured term loan rating to Caa1 from B2.
Southcross Holdings’ speculative grade liquidity rating also was affirmed at SGL-3.
The downgrades reflect the high financial leverage of both Southcross and Southcross Holdings, along with a challenged commodity price environment expected to restrain volume growth, Moody’s said.
The downgrades also consider the need for ongoing support from their private equity sponsors to ensure adequate liquidity and covenant compliance, the agency said.
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