Moody's rates Everest Ba3, B1

Moody's Investors Service said it assigned Ba3 corporate family ratings to Everest Acquisition LLC and Everest Acquisition Finance Inc.

Moody's also assigned the companies a Ba3 senior secured rating and a B1 unsecured senior note rating.

The outlook is stable.

Everest Acquisition LLC is the acquisition vehicle formed by Apollo Global Management LLC, Riverstone Holdings LLC, Access Industries Inc., Korea National Oil Co. and other investors to acquire all of El Paso Corp.'s oil and gas exploration & production assets. Upon closing, Everest will be renamed EP Energy, LLC.

"EP Energy has a well-diversified portfolio of properties and a credible strategy to reduce its exposure to weak natural gas prices using the drill bit," Moody's vice president and senior analyst Stuart Miller said in a news release.

"While the company will be operating with a very leveraged balance sheet that may constrain capital spending levels at times, the management team has successfully navigated around the same challenge in the past as a subsidiary of El Paso Corp.," Miller added in the release.

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