Moody's rates Eagle Rock B1, notes B3

Moody's Investors Service said it assigned a B1 corporate family rating to Eagle Rock Energy Partners, LP, along with a B3 rating on its proposed offering of $300 million of senior notes and an SGL-3 speculative-grade liquidity rating.

The outlook is stable.

The proceeds will be used to repay borrowings on Eagle Rock's senior secured revolving credit facility.

The ratings reflect the partnership's reasonable financial leverage following the largely equity funded Crow Creek acquisition and management's commitment to further leverage reduction, Moody's said.

The partnership has higher business risk than its similarly rated peers, the agency said, so maintaining lower financial risk will be important for the ratings.

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