Moody's Ratings has upgraded Cheniere Energy, Inc.'s senior unsecured notes one notch to Baa2 from Baa3 while maintaining a stable outlook across its ratings. The agency also affirmed the Baa2 ratings on the senior unsecured notes of Cheniere Energy Partners, L.P., and left that outlook unchanged.
According to Elena Nadtotchi, Moody's Senior Vice President, the upgrade reflects Cheniere Energy's robust operating performance, a solid balance sheet and strong execution on growth initiatives, notably the expansion of liquefied natural gas (LNG) production capacity at Corpus Christi.
Moody's said the Baa2 rating captures Cheniere Energy's consistent operating results, an organization-wide conservative financial policy, effective risk management and the financing approach for its highly contracted, modular growth projects. The company has put in place a capital allocation framework that prioritizes reinvesting operating cash flow into capacity expansion and funding dividends. Remaining free cash flow, the agency noted, is targeted at debt reduction and share repurchases while preserving strong liquidity.
Moody's highlighted the completion of a material expansion at Cheniere Corpus Christi Holdings, LLC as a driver that will lift earnings and cash flow beginning in 2026. On a proportionately consolidated basis, the company has maintained a solid leverage profile with Debt/EBITDA trending below 4x. The upgrade also takes into account a recent one-notch improvement in Cheniere Corpus Christi Holdings' ratings to Baa1 from Baa2.
Moody's also observed that Cheniere Energy's debt sits behind significant amounts of secured project-level debt and unsecured intermediate holding company debt. The firm expects Cheniere Energy to move toward a simpler funding structure over time, reducing structural subordination by addressing more capital and refinancing needs at the parent level.
At year-end 2025, Cheniere Energy reported consolidated unrestricted cash of $1.1 billion and held a fully undrawn $1.25 billion unsecured revolving credit facility due to mature in August 2030. That facility carries no financial maintenance covenants. The company generates substantial operating cash flow from distributions by its subsidiaries, which Moody's says covers debt service and dividends. The firm's public notes include maturities in 2028 and 2034.
Cheniere Energy Partners, a master limited partnership, is approximately 51% owned by Cheniere Energy and 49% held by The Blackstone Group Inc., Brookfield Asset Management Inc. and public unitholders. Moody's affirmed the partnership's Baa2 rating, linking it to predictable cash flow and distributions from three operating subsidiaries: Sabine Pass Liquefaction, LLC; Sabine Pass LNG, L.P.; and Cheniere Creole Trail Pipeline, L.P.
However, Moody's notes that the partnership's rating is offset by structural subordination to Sabine Pass Liquefaction's debt and by significant distribution obligations. To address this, the group is taking steps to reduce structural subordination by refinancing maturing debt at the partnership level.
Cheniere Energy Partners is expected to manage consolidated leverage at Debt/EBITDA levels below 4x. At the end of 2025, the partnership reported balance sheet cash of $182 million and had a fully undrawn $1 billion revolving credit facility maturing in June 2028. The partnership's public notes mature across a series of years: 2029, 2031, 2032, 2033, 2034 and 2035.
Moody's stable outlook for Cheniere Energy reflects its expectation that the company will preserve a strong leverage profile while finishing its growth projects at Cheniere Corpus Christi Holdings. The rating action recognizes current financial strength and the anticipated uplift in earnings and cash flow tied to the Corpus Christi expansion.
Key points
- Moody's raised Cheniere Energy's senior unsecured rating to Baa2 from Baa3 and affirmed Baa2 for Cheniere Energy Partners - both with stable outlooks.
- Drivers cited include strong operating performance, conservative financing of modular growth projects, a balanced capital allocation framework and completion of a Corpus Christi expansion expected to boost 2026 cash flow.
- Liquidity at year-end 2025 included $1.1 billion in consolidated unrestricted cash and a fully undrawn $1.25 billion unsecured revolver for Cheniere Energy; the partnership held $182 million and a fully undrawn $1 billion revolver.
Risks and uncertainties
- Structural subordination: Cheniere Energy's unsecured creditors remain structurally subordinated to significant secured project-level debt and unsecured intermediate holding company debt, a dynamic the company plans to simplify over time.
- Distribution and refinancing needs: Cheniere Energy Partners faces meaningful distribution requirements and has exposure to maturing debt that the group aims to refinance at the partnership level to reduce subordination.
- Execution of growth projects: While Moody's cites strong execution, final benefits to earnings and cash flow are contingent on completion of the Corpus Christi expansion and related operational performance.
Note: This report presents Moody's stated rationale and the financial positions disclosed by the company and its partnership at the end of 2025.