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We recently published 10 Big Names Crumbling Before 2026. New Fortress Energy Inc. (NASDAQ:NFE) is one of the worst performers on Tuesday.
New Fortress dropped for a second day on Tuesday, shedding 5.17 percent to close at $1.10 apiece amid lingering concerns over its financial standing, further dampened by a credit rating downgrade from S&P Global Ratings.
Earlier this month, New Fortress Energy Inc. (NASDAQ:NFE) announced that it has extended its forbearance agreement with holders of its new senior secured notes due 2029 from December 15, 2025 to January 9, 2026 ahead of the completion of its restructuring with its stakeholders.
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Following the news, S&P Global Ratings lowered its credit rating for New Fortress Energy Inc. (NASDAQ:NFE) to ‘SD,’ as well as its senior secured term loan B due 2028 to ‘D’ from both CCC-.
An SD (Selective Default) rating means that New Fortress Energy Inc. (NASDAQ:NFE) has failed to meet its specific financial obligations but is expected to continue meeting its commitments, while a CCC means that a company is currently highly vulnerable to nonpayment.
“We believe the company will take the next several weeks during the forbearance period to negotiate with its other lenders on an amenable solution to restructure all debt across its capital structure. In our view, it’s highly likely that the outcome of these negotiations will either constitute a conventional default or a selective default under our criteria,” S&P Global Ratings said.
“We will reevaluate our ratings on NFE as significant developments related to the capital structure arise or upon the announcement of a more comprehensive debt-restructuring plan,” it added.
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Disclosure: None. This article is originally published at Insider Monkey.