S&P lowers Dynagas LNG

S&P said it lowered to B- from B its long-term issuer credit ratings on Dynagas LNG Partners LP and its finance subsidiary Arctic LNG Carriers Ltd. The outlook is negative.

S&P also lowered its issue rating on the $480 million senior secured term loan B due 2023 issued by Arctic LNG Carriers to B+ from BB-. The recovery rating is 1, reflecting an expectation of very high (90%-100%, rounded estimate 95%) recovery in the event of a payment default.

“The downgrade reflects our view of heightening refinancing risk for Dynagas LNG as it approaches the maturity of the outstanding $250 million unsecured notes due Oct. 30, 2019,” S&P said in a news release.

“Dynagas LNG has not yet secured committed funding to refinance the debt, and we expect the company's liquidity sources to fall materially short of its uses over the 12 months started Nov. 1, 2018, unless it refinances. Moreover, in our view, the refinancing could become increasingly difficult and options more limited as the maturity approaches.”

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