Moody’s ups Archrock view to stable

Moody's Investors Service said it changed Archrock Partners, LP’s outlook to stable from negative.

The agency also affirmed Archrock's B1 corporate family rating, B1-PD probability of default rating, B3 senior unsecured note rating and SGL-3 speculative grade liquidity rating.

"The stable outlook is supported by Archrock's leading position in US compression services, 60+% gross margins, a 50% distribution cut and cost reduction initiatives that were undertaken during 2016," Moody’s vice president and senior analyst RJ Cruz said in a news release.

"These strengths are offset by the large proportion of short-term contracts, a fair amount of non-investment grade customers and total leverage remaining persistently high at almost 5x."

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