Moody's rates Sabine Pass notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Sabine Pass Liquefaction, LLC's new $1 billion of senior secured notes due 2022.

The agency also affirmed Sabine Pass' Ba3 underlying rating on its $8.9 billion of senior secured bank loans and bonds and affirmed Sabine Pass LNG's B1 rating on its $2.1 billion in senior secured notes.

The outlooks are stable.

The net bond proceeds are expected to effectively reduce Sabine Pass Liquefaction's bank loan commitment by $900 million with the remainder used to pay for increased interest during construction and transaction costs. Total effective debt after the bond issuance is estimated at around $9 billion compared to $8.9 billion in May 2013.

Moody's said the Ba3 rating on the bonds and the affirmation of the existing Ba3 incorporates its view that Sabine Pass Liquefaction's main credit drivers are substantially unchanged. The agency understands that Sabine Pass Liquefaction's new senior secured bonds will have substantially the same terms as Sabine Pass Liquefaction's previous senior secured bonds due in 2021 and 2023.

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