S&P rates Cheniere B+

Standard & Poor's said it assigned its B+ corporate credit rating to Cheniere Energy Partners, LP (CQP).

At the same time, the agency withdrew its preliminary B+ term loan B rating on Cheniere after it cancelled the issuance. The outlook is stable.

The agency said the rating reflects a fair business risk profile and an aggressive financial risk profile. The fair business risk profile reflects an expectation of stable cash flows from Cheniere's Sabine Pass LNG LP regasification terminal, Sabine's more substantial future cash flows once completed and the expectation that Cheniere may seek to grow through drop-downs from its parent and additional project development in the meantime.

S&P said the stable outlook reflects the expectation that Cheniere's and its parent's cash flows will likely remain weak for the next several years, but sufficient to meet their modest obligations until the Sabine project begins to distribute cash and financial measures strengthen.

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