Fitch rates USA Compression, debt

Fitch Ratings said it assigned a BB- long-term issuer default rating to USA Compression Partners, LP.

Additionally, the agency assigned a BB-/RR4 rating to the company’s proposed offering of senior unsecured notes due 2026 and a BB+/RR1 rating to its senior secured asset-based revolving credit facility.

The notes are being co-issued with USA Compression Finance Corp.

The outlook is stable.

Fitch said the ratings are reflective of USA Compression's acquisition of CDM Resource Management LLC and CDM Environmental & Technical Services LLC from Energy Transfer Partners, LP, which will effectively double the size of USA Compression and the associated transaction with Energy Transfer Equity, LP.

This is expected to improve USA Compression's cost of equity capital due through the elimination of its incentive distribution rights, the agency explained. The enlarged size in complementary geographic regions with rising customer diversity and limited overlap should allow the company to compete more economically and effectively with greater scale.

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