S&P rates Sabine Pass notes BB+

Standard & Poor's said it assigned its BB+ project rating to Sabine Pass LNG LP's $420 million in senior secured notes due 2020 and assigned a 2 recovery rating.

At the same time, S&P affirmed its BB+ issue rating and 2 recovery rating on Sabine Pass' $1.67 billion 7½% senior notes due Nov. 30, 2016 and withdrew its ratings on the 2013 notes.

The outlook is stable.

Sabine Pass' October 2012 refinancing amortized $130 million of long-term debt and addressed its near-term maturities, both of which the agency said it views as positive for credit.

Partially mitigating these positives, the new notes are interest-only, which means further amortization may not occur until the 2016 notes come due, shortening the remaining repayment period covered by the terminal use agreements, S&P said.

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