MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services signalled it
may downgrade Cheniere Energy Inc., after the company said it is in advanced
talks for a proposed arrangement for a natural gas marketing company to manage
the throughput of LNG and the downstream natural gas marketing for LNG cargoes
delivered for Cheniere Marketing's account at Sabine Pass LNG.
The agency placed its 'B' corporate credit rating on the liquefied natural
gas (LNG) project developer on negative watch.
According to S&P, the arrangement will reduce Cheniere's liquidity and
working capital requirements and will also diminish the company's ability to
produce cash flows sufficient to satisfy its debt obligations.
The agency has also placed its ratings on Cheniere Energy's unit Sabine Pass
LNG on negative watch.
TFN.newsdesk@thomson.com
ndi/jro
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