Moody’s gives Peru LNG, notes baa3

Moody's Investors Service said it assigned a Baa3 issuer rating to Peru LNG SRL (PLNG) and its proposed $940 million in senior unsecured notes.

Proceeds will be used to refinance existing corporate bonds together with bank debt.

The outlook is stable.

Moody’s said the Baa3 ratings on Peru LNG and its $940 million senior unsecured notes are supported by its solid credit metrics and financial policies, no volume risk, low supply risk, high facility utilization factor, limited competition risk, minimum foreign exchange risk, strong shareholders support and the high relevance of the company to the Peruvian's energy industry and trade balance.

“On the other hand, the ratings also consider the company's small and single operational asset base as well as its exposure to Liquefied Natural Gas (LNG) price risk, which bring up operating and financial risk,” the agency said in a news release.

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