...February 13, 2020 SYDNEY (S&P Global Ratings) Feb. 13, 2020--S&P Global Ratings said today that unfavorable market conditions for liquefied natural gas (LNG) increase the uncertainty around the timing of a potential sell-down in Woodside Petroleum Ltd.'s (###+/Stable/--) interests in its integrated Scarborough LNG project. Prolonged uncertainty in the sell-down could place downward rating pressure, in our view. Spot market prices for LNG remain depressed at historical lows of below US$3 per million British thermal units (/mmbtu). However, Woodside's exposure to the spot market currently remains limited to about 15%-20% of output. Nevertheless, we believe current LNG market conditions will make it even more challenging for Woodside to execute favorable long-term commercial LNG agreements, as well as achieve a sell-down outcome that would meet shareholders' return expectations. We could lower the rating if Woodside is unable to maintain funds from operations to debt above 30% during the company's...
