Moody's ups Exterran notes, rates notes B1

Moody's Investors Service said it assigned a B1 rating to Exterran Partners, LP's (EXLP) proposed $300 million senior unsecured notes.

The notes will be co-issued by EXLP Finance Corp. (unrated).

The agency also upgraded Exterran's existing senior unsecured notes to B1 from B2 and affirmed the Ba3 corporate family rating, Ba3-PD probability of default rating and SGL-3 speculative grade liquidity rating.

The outlook remains stable.

Exterran intends to use net proceeds from the offering to partially finance the acquisition of a fleet of compressor units from MidCon Compression, LLC, a wholly owned subsidiary of Chesapeake Energy Corp. (Ba2 stable).

"The MidCon acquisition bolsters EXLP's scale on a stand-alone basis and is supportive of the MLP's growing independence from Exterran Holdings, Inc.," Moody's vice president and senior analyst Michael Somogyi said in a news release.

"The upgrade of the senior unsecured notes is reflective of a shift in EXLP's capital structure to more unsecured basis as there is now proportionally less secured debt with a priority claim ahead of senior unsecured bondholders."

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