S&P rates Eagle Rock notes B

Standard & Poor's said it assigned its B senior unsecured debt rating to Eagle Rock Energy Partners LP's proposed $250 million notes due 2020.

Eagle Rock Energy Finance Corp. is the co-issuer of the notes. The recovery rating on the notes is 4, indicating an expectation for average recovery if a payment default occurs.

According to S&P, immediately following the issuance, the partnership will have $550 million total principal amount of outstanding notes.

Pro forma for the issuance, the agency said it expects the company's debt to EBITDA ratio to be below 4x over the next year, however, there could be some volatility in these cash flows depending on market conditions.

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