Moody’s downgrades EV Energy, notes

Moody's Investors Service said it downgraded EV Energy Partners, LP’s corporate family rating to Caa3 from Caa2 and probability of default rating to Ca-PD from Caa2-PD.

The agency also downgraded the senior unsecured notes rating to Ca from Caa3 following the company's announcement that it entered into a restructuring support agreement with 70% of holders of its $343 million 8% notes due 2019 and lenders holding about 94% of the principal amount outstanding under the company's reserve-based lending facility.

The outlook is negative.

Moody’s said the downgrade reflects expectations of significant loss to the existing bondholders based on the proposed restructuring transaction.

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