Moody's rates EnTrans loan B3

Moody's said it assigned a B2 corporate family rating and B2-PD probability of default rating to EnTrans International, LLC. Concurrently, Moody's assigned a B3 rating to the company's proposed $255 million senior secured first-lien term loan.

Proceeds from the term loan will be used to refinance existing debt, repay third-party preferred stock and cover associated fees and expenses.

The outlook is stable.

“EnTrans' exposure to the highly cyclical North American oil and gas upstream and energy transportation industry is the principle credit driver of the rating,” said Moody's lead analyst Andrew MacDonald in a news release.

“Nonetheless, we expect the company to benefit from near-term positive macroeconomic drivers that will drive growth and reduce leverage in relatively short order. Long term, we expect that recent cost structure improvements combined with a conservatively managed balance sheet provide protection during eventual periods of diminished demand.”

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