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Moody's slashes Freeport LNG
Moody's Investors Service said it downgraded the ratings of Freeport LNG Investments, LLLP (Flngi), including the corporate family rating to B3 from B1, the probability of default rating to B3-PD from B1-PD and the rating on its senior secured term loan to B3 from B1.
The agency placed the ratings on review for downgrade. Previously, the outlook was stable.
“The downgrade of the CFR to B3 reflects Flngi's weak liquidity and need for capital contributions to service its debts following the earlier fire incident at the LNG facility resulting in the interruption of all operating activity. Moody's now understands that the company will not be able to complete all necessary repairs and return to full plant operations until late 2022 based on management's latest estimates.
“Even if the plants resume full operations on that timeline, it will be a considerable period of time from the date of incident before the operating entities replenish their debt service reserve accounts and are able to resume distributions to the parent,” Moody’s said in a press release.
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