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Southeast Supply Header, LLC -- Moody's affirms Southeast Supply Header's Baa2 rating; changes outlook to negative

Moody's Investors Service ("Moody's") affirmed Southeast Supply Header, LLC's (SESH) Baa2 senior unsecured rating and changed the outlook to negative from stable. "Southeast Supply Header's negative outlook reflects the approaching 2020 expiration of its largest contract, a material credit negative that could result in significantly weaker financial metrics starting in late 2020, barring successful capacity re-contracting at similar terms ", said Moody's Analyst Lesley Ritter. A failure to renegotiate SESH's largest customer contract, a 500,000 Dth/d capacity contract with Florida Power and Light Company (FPL, A1 stable), by September 2020 would have a substantial negative impact since the capacity represents about 46% of total pipeline capacity and 50% of total revenues.