Moody’s lowers M6 ETX

Moody's Investors Service said it downgraded the ratings of M6 ETX Holdings II MidCo LLC, including its corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and senior secured term loan rating to B2 from B1.

"The downgrade reflects continued high leverage as a result of reduced new well activity in the Haynesville, M6 ETX's core operating area," said Thomas Le Guay, a Moody's vice president, in a press release.

"Throughput from existing wells and predominantly fixed-fee contracts will continue to support M6 ETX's operating performance," Guay added.

The agency said it estimates M6 ETX’s adjusted debt/EBITDA will stay above 5x over the next 12-18 months.

The outlook remains stable.

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