Moody's gives PVR notes B2

Moody's Investors Service said it assigned a B2 rating to PVR Partners, LP's proposed $300 million senior unsecured notes due 2021.

PVR's other ratings and negative outlook remained unchanged.

Net proceeds from the note offering will be used to reduce borrowings under the partnership's $1.0 billion senior secured revolving bank facility, which had $700 million outstanding as of March 31.

The proposed notes rank pari-passu with PVR's existing $900 million senior unsecured notes.

Moody's said the notes are rated two notches below the Ba3 corporate family rating given the size of the $1 billion secured revolving credit facility in PVR's capital structure, which has a first-lien claim to substantially all of the partnership's assets.

The notes however, could move within one notch of the corporate family rating if the relative proportion of unsecured debt continues to grow relative to secured debt, the agency said.

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