Fitch downgrades Freeport LNG

Fitch Ratings said it downgraded Freeport LNG Investments, LLLP's (Flngi) long-term issuer default rating to B- from B and its secured debt to B/RR3 from B+/RR3.

“The downgrade reflects the three-month delay in full operational resumption following a release and ignition of a natural gas vapor cloud from a ruptured liquified natural gas (LNG) transfer line at Freeport LNG Development LP's (Freeport LNG) Brazoria County, Texas LNG facility. Flngi is structurally subordinated to several levels of senior secured debt instruments that have cash traps, among other contractual rights. The cash traps at the operating subsidiaries and holding company have stopped all dividends to Flngi,” the agency said in a press release.

The ratings remain on rating watch negative.

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