BC LNG Facilities will not get Affordable Financing

The rubber is now about to hit the road. LNG new liquefaction facilities will not get affordable financing for another decade minimum. The only way BC will see a new LNG plant is if the BC government assumes enough risk from the proponent to convince lenders that the risk to them is reduced enough. Now that the government is talking about deferment of electricity bills for BC mines the LNG folks are likely not far behind. Other BC Hydro customers watch out.

Tuesday, 26 January 2016 | MYT 6:25 PM

MISC and Petronas LNG face downgrade by Moody's

KUALA LUMPUR: Moody's Investors Service has placed all the ratings of MISC
Bhd and Petronas LNG Ltd (PLL) on review for downgrade as it mulls
downgrading their major shareholder, Petroliam Nasional Bhd (Petronas).

The ratings agency said on Tuesday the review on MISC and PLL's ratings
followed its the review for downgrade of Petronas's ratings (A1 review for
downgrade) initiated on Jan 22.

The national oil company was among the seven south and south east Asian
energy companies under review for downgrade.

"PLL's A3 issuer rating is positioned two notches below its ultimate parent,
Petronas. This top down approach reflects PLL's full ownership by, and
strong operational and financial integration with Petronas.

"MISC's Baa2 issuer rating incorporates a three notch uplift from strong
support provided by its parent, Petronas," it said.

Moody's said the review would primarily focus on the assessment of
implications on parental support for the companies on the back of a
deterioration of the parent's credit strength. The review will conclude
following the completion of review on Petronas by end of the first quarter.

The ratings agency pointed out a downgrade of Petronas' ratings would likely
result in a similar rating action on the ratings of Petronas LNG and could
lower the level of support incorporated in the rating of MISC.

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