S&P puts Ras Gas on positive watch

S&P said it placed its A rating for Ras Laffan Liquefied Natural Gas Co. Ltd. (3) on CreditWatch with positive implications.

Ras Laffan Liquefied Natural Gas Co. Ltd. (II) is expected to repay all of its remaining debt on Sept. 30 and Ras Laffan Liquefied Natural Gas Co. Ltd. (3) will likely repay two out of its six tranches of debt. The RLs guarantee each other’s debt and operationally linked, S&P said.

S&P said it expects the project's debt service coverage ratios will markedly improve after full repayment of RLII's $197 million of outstanding debt on Sept. 30, 2020, and RL3 repays $44 million, covering two out of its six tranches of debt.

“The CreditWatch positive reflects the potential for an upgrade over the next three months. We could raise the rating on RL3 by one notch if the minimum DSCR materially improves above 5x thanks to the lower debt, and supported by the trains' strong performance through high availability, in line with previous years,” S&P said in a press release.

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