Moody’s rates Cheniere Corpus Christi bond Ba3

Moody's Investors Service said it assigned a Ba3 rating to Cheniere Corpus Christi Holdings, LLC's proposed $1 billion senior secured bond offering.

The outlook is stable.

Proceeds will be used to repay and reduce commitments under Cheniere Corpus Christi’s roughly $6 billion senior secured term loan facility due May 2022.

Moody’s said the Ba3 senior secured rating is supported by fixed capacity type payments under 20-year Sale and Purchase Agreements between Corpus Christi Liquefaction, LLC and six separate investment grade counterparties that provide significant and predictable future cash flows.

Moreover, the agency said the rating considers the lump sum Engineering, Procurement, and Construction (EPC) contract with a subsidiary of Bechtel Corp. and Bechtel's global experience in building similar large LNG liquefaction facilities.

The Ba3 rating incorporates construction risk, complexities around the consolidated capital structure, sizable equity contribution requirements from Cheniere Energy, Inc. (unrated) and operating period execution risks, the agency explained.

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