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What: Shares of Cheniere Energy
So what: Standard & Poor's upgraded Cheniere Energy's credit from CCC+ to B- after the company was able to raise capital and improve its capital structure. The company's Sabine Pass Liquefaction subsidiary also had its rating increased to BB-.
Now what: Credit rating agencies are judging the risk of a company defaulting on its debt, essentially judging the downside risk for equity investors. So it's a good thing for the stock, but it doesn't mean questions about the company have been answered. In the report, S&P pointed out that the company will likely report negative cash flow for the next four years, and that it will have to execute on its export facility over the next few years, as well as access the capital markets again, possibly diluting shareholders.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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