S&P gives Cameron LNG notes A

S&P said it assigned a preliminary A rating to Cameron LNG LLC’s proposed offering of up to $2 billion of senior secured debt.

Cameron plans to sell four tranches of notes with maturities of 11.5 years, 15 years, 18 years and 19 years.

“The preliminary A rating is based on credit substitution. Operations phase risk is taken by the offtakers since tolling payments include fixed payments that cover debt service, as well as all fixed and variable operations and maintenance. Therefore, the rating on Cameron is governed by that on the lowest-rated offtakers, Mitsui & Co. Ltd. and Mitsubishi Corp., which are both rated A,” said S&P in a press release.

S&P said it expects Cameron to use the proceeds to repay debt outstanding on its uncovered loan facility.

The outlook is stable.

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