On November 25, 2015, Moody’s Investors Service downgraded EV Energy Partners, L.P.’s (EVEP) corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD and its senior unsecured notes rating to Caa1 from B3. “The downgrade reflects our expectation that EVEP’s cash flow metrics will continue to deteriorate given reduced hedge prices and volumes and our view of oil and natural gas prices through at least 2016,” commented John Thieroff, Moody’s Vice President. “The negative outlook reflects the challenges EVEP faces as an upstream master limited partnership with a high reliance on acquisitions to replace production and to balance a market-acceptable distribution with capex sufficient to sustain production without increasing leverage.” Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.