Moody's rates Archrock Partners notes B2

Moody's Investors Service said it assigned a B2 (LGD 5) rating to Archrock Partners, LP's proposed $500 million senior unsecured notes due 2027.

Moody's also said it affirmed the B3 rating on its existing senior unsecured notes, along with its B1 corporate family rating, B1-PD probability of default rating and SGL-3 speculative liquidity rating.

The outlook remains stable.

The proposed notes benefit from its parent Archrock Inc.'s guarantee, the agency said.

Archrock's existing senior notes do not benefit from such a parent guarantee, the agency said.

The proceeds will be used to redeem $350 million of Archrock's outstanding 6% senior notes due 2021 and to partially repay outstanding borrowings under its credit facility.

The proposed notes issuance is opportunistically refinancing Archrock Partners' existing notes and extending maturities, the agency said.

The proposed senior notes are rated B2, one notch lower than the company's B1 corporate family rating, Moody's said.

These notes are guaranteed by Archrock, which also guarantees the company's revolving credit facility. The existing notes do not have that guarantee and are rated B3, two notches lower than the company's corporate family rating, the agency explained.

The ratings reflect the company's leading position in natural gas compression services, basin diversity, reasonably stable gross margins and growing U.S. natural gas demand, Moody's said.

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