Moody's ups Linn notes to B2

Moody's Investors Service said it upgraded the senior unsecured note rating for Linn Energy, LLC to B2 from B3 and changed the outlook to stable from positive.

The agency assigned a B2 (LGD5, 71%) rating to Linn's proposed $750 million senior unsecured notes and affirmed its B1 corporate family and probability-of-default ratings, and SGL-3 speculative grade liquidity rating.

Proceeds will be used to fund repay borrowings under its senior secured credit facility.

"The move to a stable outlook reflects Linn's growth through a recent series of debt funded acquisitions, which has pushed leverage on the proven developed reserve and production significantly higher," Ken Austin, a Moody's senior credit officer, said in a statement.

"Although the company continues to grow its scale and increase its diversification to ranges that compare favorably to the B1 peer group, leverage is on the high end for the rating and will slow Linn's progress in developing an overall profile compatible with a higher rating."

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