Fitch pares Peru LNG

Fitch Ratings said it downgraded Peru LNG Srl's long-term foreign- and local-currency issuer default ratings to B+ from BB-. The agency also lowered the rating on the company’s $940 million of senior unsecured notes due 2030 to B+/RR4 from BB-.

“PLNG's downgrade and outlook reflect the weaker operational performance given international prices for natural gas, operational disruptions at the plant and consequent higher leverage due to decreasing EBITDA generation. Per Fitch's updated Oil & Gas Price Deck for Henry-Hub (HH) and National Balance Point (NBP) indexes, PLNG's net total debt to EBITDA will reach 16x during 2021, and remain above 7x during 2022, exacerbating the company's cash flow volatility,” the agency said in a press release.

The outlook remains negative.

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