Enterprise Shipholding Rating Downgraded To B2 From Ba3

Friday, September 10, 1999
Moody's Investors Service downgraded its rating for the senior notes of Enterprises Shipholding Corp. to B2 from Ba3. The downgrade reflects Moody's expectation that the pressure on freight rates will continue to build beyond the normal level of seasonality, especially in the light of substantial excess capacities in the reefer industry. In addition, management faces the challenge of allocating operating cash flow and balance sheet liquidity between operating requirements, debt service and advance/progress payments for newbuilts. Furthermore, the current market value of the underlying assets is unlikely to recover to a level that provides meaningful asset collateral for the rated debt in the near term. Moody's expects the depressed situation in the reefer industry to remain the key determinant of Enterprises Shipholding's ability to service its debt in the short/medium term. Given the severity of the current market downturn, the seasonal increase of freight rates typically seen during the first half of the year is expected to be less pronounced during the first few months of 2000. Hence, Moody's believes that the operating performance of Enterprise Shipholding Corp. and its resulting ability to service debt will continue to remain under pressure. Should freight rates fail to show marked improvement, further rating downgrades will be considered. If - contrary to expectation - rates returned to historic levels near term, this would also be considered in the rating. The outlook for the B2 rating is negative. Enterprise Shipholding Corp. (headquartered in Athens, Greece) is one of the leading independent owners and operators of refrigerated cargo vessels ("reefers"). The company has a long-standing presence in the industry and a significant, diversified customer base.
Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Offshore Wind Shift to Drive Vessel Services Cooperation

Evolving procurement processes for U.K. Round 3 offshore wind farms will require a greater number of work streams, personnel with new and differing skills, and

ABB hands over Germany’s DolWin1

DolWin1 integrates 800 megawatts (MW) of clean energy into the German transmission grid ABB, the leading power and automation technology group, has successfully

Korean Shipyards in Troubled Water

Struggling with technology and a plunge in oil prices that has discouraged exploration, Korean vessel makers are racking up debt and could show billions of dollars in losses, reports Bloomberg.

 
 
Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1188 sec (8 req/sec)