S&P Global Ratings said it assigned its ‘B-‘ issue rating on Bermuda-registered Golar LNG Ltd.’s (B/Stable/–) proposed $500 million senior unsecured notes due September 2031. The one-notch differential between our ‘B’ long-term issuer credit rating on the company and our ‘B-‘ issue rating on the proposed notes reflects the structural subordination of those notes to debt at the subsidiary level. We expect asset-backed financing to continue accounting for the majority of Golar’s capital structure.
We understand the company will use the proceeds to fund general corporate purposes, which could include, among other things, investments required to redeploy its floating liquefied natural gas Hilli vessel in Argentina next year. We consider this transaction rating neutral given that our ‘B’ issuer credit rating reflects Golar’s high leverage, with S&P Global Ratings-adjusted debt to EBITDA already being above 10x in 2025 and expected to remain above this in 2026, while liquidity remains sound, with sources adequately covering uses.
Source: S&P Global