Sunday 11, June 2017 by Georgina Enzer

S&P maintains ‘A’ rating and stable outlook on Ras Laffan LNG bonds

S&P Global Ratings has announced that its 'A' ratings and stable outlooks on the $4.415 billion senior secured bonds issued by Qatar-based Ras Laffan Liquefied Natural Gas Co. Ltd. (II) (RLII) and Ras Laffan Liquefied Natural Gas Co. Ltd. (3) (RL3) are currently unaffected by the economic and diplomatic measures announced by Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt against Qatar on 5 June, 2017.

“We do not anticipate that exports of liquefied natural gas (LNG) from Qatar to major markets in Asia and Europe will be affected by the sanctions at this point, given that Qatar can access international waters via the Strait of Hormuz without crossing Saudi, Emirati, or Bahraini national waters. We will, however, continue to monitor the situation in the region and may take a rating action if we view developments could be detrimental to RLII's and RL3's ability to generate strong consolidated cash flows. This could occur, for example, if LNG ships have difficulty in accessing the LNG facilities or face refuelling restrictions, or if international counterparties to the project sever their relationships with Qatar and thereby choke the project's revenue stream," according to an official statement by S&P on the senior secured bonds issued by Qatar-based Ras Laffan Liquefied Natural Gas Co. Ltd. (II) (RLII) and Ras Laffan Liquefied Natural Gas Co. Ltd. (3) (RL3) following recent announcements from Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt to cut ties with Qatar.

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