Moody’s stabilizes Southeast Supply view

Moody’s Investors Service said it changed its outlook for Southeast Supply Header LLC (SESH) to stable from negative, affirmed its B1 ratings but lowered its speculative grade liquidity rating to SGL-4 from SGL-2.

SESH is owned by Enbridge Inc. and Energy Transfer LP. Both own a 50% stake.

"The stable outlook reflects our view that Southeast Supply Header's refinancing risk has been marginally reduced by an improvement in its contracted capacity and financial position," stated Edna Marinelarena, a Moody’s assistant vice president, in a press release.

"This should help make the pipeline, which has had difficulty extending contracts in recent years, more viable to its two owners, who must address next year's $400 million debt maturity on June 15, 2024", added Marinelarena.

Moody’s noted SESH does not have the internal cash flow or external cash sources to pay off the $400 million in notes, which accounts for the weaker liquidity rating.

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