Moody's changes Energy Acquisition view to negative

Moody's Investors Service said it changed the ratings outlook for Energy Acquisition Co., Inc. to negative from stable. At the same time, Moody's affirmed the company's B3 corporate family rating and B3-PD probability of default rating, along with its B2 first-lien senior secured debt rating and Caa2 senior secured second-lien debt rating.

"The negative outlook reflects our expectation that ECI's end-market demand will reduce over the course of 2020, which in turn will weaken the company's earnings and cash flow," said Shirley Singh, Moody's lead analyst for ECI, in a press release.

"Even so, after having drawn down on its revolving credit facility, ECI's current liquidity including a cash balance of above $100 million should enable the company to weather weaker market conditions over the coming quarters," added Singh.

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