Moody’s rates Sabine Pass notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Sabine Pass Liquefaction, LLC's new $1.35 billion senior secured notes.

Concurrently, the agency affirmed the Ba1 rating on Sabine Pass’ existing $12.3 billion of senior secured bonds.

The outlook is positive.

Net bond proceeds are expected to fund a portion of SPL's remaining construction and financing costs.

Moody’s said the Ba1 rating acknowledges Sabine Pass’ transition to an operating, fully integrated cash flow producing asset with investment grade characteristics. Revenues derived from 20-year contracts with financially sound off-takers are the basis for the company’s credit profile.

Contracted revenues are expected to grow meaningfully by 2020 when all five of Sabine Pass’ trains are operational and generate key financial metrics considered appropriate for an investment-grade rating, the agency added.

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