Fitch gives Venture Global B, notes BB-

Fitch Ratings said it gave a first-time long-term issuer default rating of B to Venture Global LNG, Inc. (Vglng). The agency also assigned BB-/RR2 senior secured ratings to the company’s planned senior secured notes. The outlook is stable.

“Vglng ratings reflect the volatility of its primary revenue source due to commodity price exposure associated with early commissioning revenues. The revenues are generated from liquified natural gas (LNG) commissioning cargos sold in the global LNG market at spot prices. Also reflected is the project completion risks at Vglng's two LNG projects currently under construction. Once the LNG projects are complete, VGLNG benefits from incremental cashflow provided by distributions from the projects,” the agency said in a press release.

The proceeds are expected to prepay the outstanding corporate term loan.

Fitch said the issuer benefits from cash flows under long-term sale and purchase agreements with mostly investment-grade counterparties under take-or-pay contracts.

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