Moody’s rates Exterran Energy notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed $300 million senior unsecured notes due 2025 of Exterran Energy Solutions, LP and co-issuer EES Finance Corp., wholly owned subsidiaries of Exterran Corp. (unrated).

Proceeds will be used to repay outstanding debt under Exterran Energy’s senior secured term loan.

The agency also assigned a B1 corporate family rating, B1-PD probability of default rating and SGL-2 speculative grade liquidity rating to Exterran Energy.

The outlook is stable.

All debt, including the proposed offering, are fully and unconditionally guaranteed by Exterran Corp.

"The B1 CFR and stable outlook are supported by Exterran's scale, global diversification, relatively stable gross margins, and management's commitment to maintain relatively low financial leverage," Moody’s vice president and senior analyst RJ Cruz said in a news release.

"These strengths are tempered by the company's reliance on contract renewals, Latin America concentration and if there were weak development activity because of slowing global demand for natural gas."

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