Moody's rates Freeport LNG, loan B1

Moody's Investors Service said it assigned first time ratings to Freeport LNG Investments, LLLP (Flngi), including a B1 corporate family rating, a B1-PD probability of default rating and a B1 rating on its planned senior secured term loan B.

“The B1 CFR principally reflects high absolute level of indebtedness maintained by the group, as well as the expectation of a gradual organic debt reduction and deleveraging over the longer term,” Moody’s said in a press release.

“The stability and magnitude of Flngi's cash flow stream is tempered by the high extent to which Flngi's debt is structurally subordinated to $1.25 billion in debt raised at intermediate holding company FLEX-IH and to $12.16 billion of project debt that the group's LNG operating companies raised earlier to finance construction of the three principal operating assets,” the agency added.

The outlook is stable.

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