MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services downgraded
liquefied natural gas project developer Cheniere Energy Inc. and unit Sabine
Pass LNG L.P., citing material erosion in the company's liquidity position and
incurrence of additional debt in the form of a $95 million bridge loan.
Cheniere's corporate credit rating was cut to 'CCC+' from 'B' and Sabine
Pass' senior secured rating was lowered to 'B+' from 'BB'. The ratings were
taken off negative watch.
The outlook is negative.
S&P said the ratings reflect Cheniere's vulnerable business risk profile and
highly leveraged financial risk profile.
The recovery rating on Sabine Pass has been revised to '4', indicating
average 30 percent to 50 percent recovery of principal in the event of a payment
default.
TFN.newsdesk@thomson.com
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