Moody’s downgrades Exterran

Moody’s Investors Service said it downgraded Exterran Energy Solutions, LP’s corporate family rating to B1 from Ba3, probability of default rating to B1-PD from Ba3-PD, its senior unsecured notes rating to B3 from B1 and its speculative grade liquidity was downgraded to SGL-3 from SGL-2.

Exterran Energy’s senior unsecured notes are co-obligations of EES Finance Corp., and are guaranteed by Exterran Corp., as well as by its principal domestic operating subsidiaries. Exterran Energy is a wholly-owned limited partnership through which Exterran Corp. owns its operating subsidiaries.

Exterran Energy’s B1 CFR reflects its growing debt leverage, a business mix, which has become increasingly exposed to project construction risk, offset to an extent by the high and stable gross margins attributable to its contract operations (natural gas compression and processing) business segment, the agency said.

The SGL-3 rating reflects adequate liquidity supported by a $28 million cash balance as of Sept. 30 and access to the senior secured revolving credit facility, Moody’s said.

The outlook remains stable.

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