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Cheniere Energy Inc. Mar 12 Product Image

Cheniere Energy Inc. Mar 12

  • ID: 2083044
  • March 2012
  • Standard & Poors


  • Cheniere Energy Inc.
  • Sabine Pass LNG L.P.
  • MORE

Demonstrated ability to access capital markets to address debt maturities. Contracted cash flows at subsidiary Sabine Pass LNG L.P. should service project-level debt and allow for modest distributions. Contracted cash flows at subsidiary Sabine Pass Liquefaction LLC could significantly increase distributions to Cheniere starting in 2016. Cheniere's unrestricted cash balance supports short-term interest payments until principal maturity in August 2012. Highly leveraged financial risk profile and 2012 debt maturity, which heighten liquidity concerns. Weak short-term liquefied natural gas (LNG) import prospects for Cheniere Investments and Cheniere Marketing, and no long-term track record or customer relationships. Ring-fencing structure between the Sabine Pass project and Cheniere that prevents direct distributions. Management's intent to pursue additional business opportunities that could increase business risk...

Companies mentioned in this report are:
- Cheniere Energy Inc.
- Sabine Pass LNG L.P.

Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

- Cheniere Energy Inc.
- Sabine Pass LNG L.P.

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