Moody’s gives Exterran CFR Ba3, notes B1

Moody's Investors Service said it assigned a B1 rating to Exterran Energy Solutions LP’s proposed $400 million senior unsecured notes, a Ba3 corporate family rating, Ba3-PD probability of default rating and a SGL-2 speculative grade liquidity rating.

The outlook is stable.

Proceeds from the notes along with about $335 million of drawings under a new $750 million five-year secured revolving credit facility will be used to pay off debt in its entirety at Exterran Holdings Inc. and to pay fees and expenses.

Exterran Energy's Ba3 corporate family rating is supported by its large fleet size and diversification in terms of customers and geography. The company also has moderate leverage and significant contracted revenue, which makes up about 80% of 2015 EBITDA and supports leverage metrics in a downturn.

These strengths are tempered by the company's exposure to fluctuations in natural gas production and risks associated with conducting operations in international markets, Moody’s said.

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