Moody's rates Tortoise Borrower loans Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating and Ba2-PD probability of default rating with a stable outlook to Tortoise Borrower, LLC.

The agency also said it assigned Ba2 ratings to a $262.5 million first-lien senior secured term loan and $35 million revolving credit facility.

The proceeds will be used to partially fund a buyout of Tortoise by a vehicle formed by private equity sponsor, Lovell Minnick Partners, and senior management, Moody's said.

The outlook is stable.

The ratings reflect the company's leading market position within the U.S. master limited partnership and midstream energy asset class, the agency said, as well as its strong asset under management (AUM) retention and healthy profit margins.

These strengths are offset by Tortoise's small scale as measured by net revenues, asset class concentration and relatively high leverage profile, Moody's said.

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