S&P Downgrades New Fortress Energy (NFE) Amid Financial Troubles

Core Viewpoint - New Fortress Energy Inc. (NASDAQ:NFE) is facing significant financial challenges, including a recent downgrade by S&P and a failure to make scheduled interest payments, which may lead to a restructuring or bankruptcy [2][4][5]. Financial Performance - The share price of New Fortress Energy fell by 11.54% between December 17 and December 24, 2025, marking it as one of the energy stocks that lost the most during that week [1]. - S&P downgraded New Fortress Energy's issuer credit rating from 'CCC-' to 'SD' (Selective Default) on December 23, indicating severe financial distress [5]. Recent Developments - Earlier in December, New Fortress Energy secured final approval for a 7-year LNG agreement with Puerto Rico, which was seen as a positive development amid ongoing financial negotiations [3]. - However, the company disclosed on December 17 that it failed to make a scheduled interest payment due on December 10, 2025, and does not plan to make principal payments due at year-end [4]. Debt Situation - New Fortress Energy has entered into a forbearance agreement with certain lenders that will expire on January 9, 2026, after which lenders could demand immediate payment, potentially forcing the company into restructuring [4]. - S&P has assessed the company's liquidity as 'weak', suggesting that a debt restructuring that equates to a default is likely to occur within the next few weeks [5].