Moody's: Encore unchanged

Moody's Investors Service said it said that Encore Acquisition Co.'s purchase of producing properties will have no effect on its ratings.

The issuance of equity by Encore Energy Partners LP will effectively result in a large portion of this acquisition being funded with equity when viewing Encore and Encore Partners on a consolidated basis, the agency said.

However, even with the high proportion of equity funding and largely proved developed nature of the acquired properties, this acquisition still increases leverage on a pro forma basis and the Encore common units carry a distribution burden, Moody's noted. Therefore, the outlook remains negative.

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