Fitch rates Encino Acquisition loan BB-

Fitch Ratings said it assigned a long-term issuer default rating of B+ to Encino Acquisition Partners Holdings, LLC and Encino Acquisition Partners, LLC.

The outlook is stable.

The agency also assigned a BB-/RR3 rating to the company's senior secured second-lien term loan.

“Encino's IDR reflects the company's sizable Utica position that will allow for years of development, competitive unit economics, the ability to cost effectively transport gas out of basin to advantaged price points, expected leverage of below 2.0x and neutral to positive cash flow profile,” Fitch said in a news release.

“These considerations are offset by the company's lack of historical operations of the Utica position and heightened potential for margin compression given its exposure to natural gas supply-demand fundamentals.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.