Moody’s ups Exterran Energy, notes

Moody's Investors Service said it upgraded Exterran Energy Solutions, LP's corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and senior unsecured notes to B1 from B3.

The speculative grade liquidity rating was affirmed at SGL-2 and the outlook remains stable.

The notes are co-obligations of EES Finance Corp. and are fully and unconditionally guaranteed by Exterran Corp., as well as by Exterran's principal domestic operating subsidiaries.

Exterran Energy Solutions is a wholly owned limited partnership through which Exterran owns its operating subsidiaries.

"Exterran operates a more integrated and international compression services and processing business than its principal US competitors, which exposes the company to lower equipment manufacturing margins and order rate volatility, as well as underlying natural gas production volumes across the global markets in which it operates," Moody's vice president Andrew Brooks said in a news release.

"However, the company's adherence to maintaining a conservatively leveraged balance sheet, targeting debt/EBITDA under 2.5x is the principal driver of the ratings upgrade."

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