Moody's assigns A1 ratings to new bonds by Ras Laffan 3

The outlook on the ratings is stable.

The rating rationale is set out in Moody's Credit Opinion for Ras Laffan 3.

Ras Laffan 3 intends to issue up to USD 1,855 million of new bonds which will be unconditionally and irrevocably guaranteed by Ras Laffan Liquefied Natural Gas Company Limited (II) ('Ras Laffan II'). Simultaneously, Ras Laffan 3 intends to enter into a senior secured
amortising facility agreement for up to USD 795 million, with an affiliate of ExxonMobil Corporation. The new debt raised, totalling up to USD 2,650 million, will be used to fund the expansion of liquefied natural gas ('LNG') production facilities in Qatar.

The ultimate shareholders of both Ras Laffan II and Ras Laffan 3 are Qatar Petroleum (70%) and Exxon Mobil Corporation (30%). Moody's considers Ras Laffan II and Ras Laffan 3 as a single entity from a credit perspective ('Ras Laffan II-3'). The new debt facilities will rank pari-passu with existing senior secured debt raised by Ras Laffan II-3. Moody's expects that further pari-passu debt will be issued to complete the expansion, subject to the terms of a common security agreement to which both companies are parties.

On the basis that Qatar Petroleum (A1, On review for upgrade) is wholly owned by the State of Qatar, Moody's categorises Ras Laffan II-3 as a
Government-Related Issuer, and applies the agency's Joint Default methodology. In accordance with this methodology, the baseline credit assessment is in the 8-10 range, and Moody's assesses both support and dependency as high.

Ras Laffan II and Ras Laffan 3 are LNG liquefaction companies in Qatar. In 2005, Ras Laffan II reported revenue of USD 1,569 million. Formed in July 2005, Ras Laffan 3 has, since its inception, been in the development stage and has not generated any operating revenues.