Moody’s views New Fortress negatively

Moody’s Investors Service said it changed its outlook for New Fortress Energy Inc. to negative from positive and affirmed the B1 ratings on the issuer and its senior secured notes.

"The negative outlook on the ratings follows NFE's announcement of its new distribution policy that will result in a very large dividend in January 2023, and potentially large payments thereafter, just as the company is accelerating its large-scale transformative investment in its own LNG capacity. The new distribution policy and greatly increased capital spending raises financial and funding risks in 2023-24 and together with the increased exposure to commodity price risk indicates an aggressive turn in financial policy and rising business risks," said Elena Nadtotchi, a senior vice president at Moody's, in a press release.

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