Research Update: Cheniere Energy Inc. Outlook Revised To Positive From Negative On Strong Cash Flows; 'BB' Rating Affirmed

We believe that the recent completion of the third train at Cheniere Corpus Christi Holdings LLC (CCH) and the anticipated completion of the sixth train at Sabine Pass Liquefaction LLC (SPL) next year will increase cash flow. Based on increased cash flow and the company's stated objective to reduce leverage, we expect leverage will decline to 4.5x-5x by 2023. Therefore, on April 15, 2021, S&P Global Ratings revised the outlook to positive from negative and affirmed its 'BB' issuer credit rating (ICR) on Cheniere Energy Inc. (CEI), its 'BBB-' rating on the company's senior secured debt (recovery rating '1' [95%]), and its 'BB' rating on the company's senior unsecured debt (recovery rating '3' [65%]). The positive outlook indicates that we

...- We believe that the recent completion of the third train at Cheniere Corpus Christi Holdings LLC (CCH) and the anticipated completion of the sixth train at Sabine Pass Liquefaction LLC (SPL) next year will increase cash flow. - Based on increased cash flow and the company's stated objective to reduce leverage, we expect leverage will decline to 4.5x-5x by 2023. - Therefore, on April 15, 2021, S&P Global Ratings revised the outlook to positive from negative and affirmed its '##' issuer credit rating (ICR) on Cheniere Energy Inc. (CEI), its '###-' rating on the company's senior secured debt (recovery rating '1' [95%]), and its '##' rating on the company's senior unsecured debt (recovery rating '3' [65%]). - The positive outlook indicates that we could raise the ratings if the company is able to achieve a debt-to-EBITDA ratio of below 6x on a consistent basis....

Research Update