Moody's downgrades Encino

Moody's Investors Service said it trimmed Encino Acquisition Partners Holdings, LLC's corporate family rating to B2 from B1 and Probability of default rating to B2-PD from B1-PD. Concurrently, Moody's affirmed Encino's senior secured second-lien term loan's B3 rating and changed the outlook to stable from negative.

"Encino's downgrade reflects the company's increased debt leverage and the potential for cash flow outspend through 2021 which limits the prospects for organic deleveraging," commented Sreedhar Kona, a Moody's senior analyst, in a press release. "The company's B2 CFR and stable outlook are supported by its strong reserve base, commodity hedge position, and adequate liquidity.

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