Fitch Ratings announced on December 20, 2024, that it has downgraded New Fortress Energy Inc.'s Long-Term Issuer Default Rating (IDR) to 'B' from 'B+'. The rating agency maintained a Rating Watch Negative, indicating continued concerns about the company's financial outlook.
The downgrade reflects Fitch's assessment of New Fortress Energy's interest coverage, EBITDA volatility, and medium-term refinancing risk. Fitch projects interest coverage of approximately 1.6x in 2026, which is below the threshold previously set for a negative rating action.
Fitch also assigned a 'B' rating and Recovery Rating of 'RR4' to NFE's $2.7 billion 12% new senior secured notes due 2029. The downgrade further impacted the Term Loan B to 'B'/'RR4' and the 6.50% notes due September 2026 and 8.75% notes due March 2029 senior secured notes to 'B-'/'RR5'. The agency highlighted that approximately $511 million of the 2026 notes remain outstanding, with springing maturities that could be triggered if not refinanced by July 31, 2026, and noted that all of NFE's major assets are encumbered.
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