Fitch raises Sabine Pass Liquefaction

Fitch Ratings said it upgraded Sabine Pass Liquefaction LLC's (SPL) senior secured notes rating and long-term issuer default rating to BBB+ from BBB.

“The rating upgrade for SPL reflects improved debt service coverage metrics under Fitch's rating case resulting from material debt reduction not factored into Fitch's previous forecast. The rating upgrade takes into account the material reliance on revenue from counterparties that are unrated or rated below the project's assigned rating to meet debt service in outer years under Fitch's assumed amortization profile.

“However, stress analysis shows that SPL's coverage metrics would remain sufficient for the assigned rating even if revenue from those same counterparties was based on Fitch's merchant liquefaction pricing assumptions,” the agency said in a press release.

The outlook is stable.

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