Moody’s puts Peru LNG on downgrade review

Moody’s Investors Service said it put Peru LNG SRL’s Baa3 senior unsecured rating under review for downgrade, citing weak second-quarter results.

“The ratings review will focus on the likelihood that Peru LNG will be able to generate cash flow in amounts that push debt leverage closer to 4.5 times in 2020, from the 8.9 times Moody’s expects for 2019. Uncertainty around demand for Liquefied Natural Gas (LNG) in the foreseeable future means that prices could remain weak, and so Peru LNG's credit metrics,” said the agency in a news release.

A multi-notch downgrade is possible, Moody’s said.

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