Fitch assigns Freeport LNG loan B+

Fitch Ratings said it assigned Freeport LNG Investments, LLLP, as borrower under the term loan B and Flngi Option Holdco, LLC as guarantor in the term loan B structure, a collective issuer default rating of B and assigned B+/RR3 ratings to its senior secured loan.

“The rating reflects the stable distributions from three operating liquified natural gas (LNG) companies, each financed independently but operating as a single LNG complex. Flngi's debt is structurally subordinated to debt at the LNG operating and intermediate holding company, and is also subject to significant refinance risk. The dividends are supported by a stable revenue stream generated from tolling-style agreements with investment-grade counterparties that bear all-natural gas supply and most cost risks,” Fitch said in a press release.

The outlook is stable.

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