Moody’s Ups Capital Product Partners’ Rating, Outlook Stable

Image Courtesy: Capital Product Partners

Ratings agency Moody’s has upgraded the corporate family rating of Athens-based Capital Product Partners with a stable outlook.

The CFR was revised to B1 from B2 and the probability of default rating to B1-PD from B2-PD.

“Our decision to upgrade CPLP’s rating follows an approximately USD 116 million debt repayment combined with a successful refinancing of its maturities with the new USD 460 million credit facility due 2023 thus extending its debt maturity profile,” Maria Maslovsky, a Moody’s Vice President, Senior Analyst and the lead analyst for CPLP, said.

Moody’s also considered CPLP’s maintenance of moderate leverage and strong coverage for some time despite deteriorating market conditions and expectations of continued stable performance with leverage measured as debt/EBITDA below 4.0x despite weakness in the tanker market.

Tanker segment has been deteriorating in 2017 owing to significant new supply coming in and putting pressure on charter rates, particularly on the crude side. In addition to the excess supply currently pressuring the tanker market, high oil and oil product inventories reduce the demand for tonne-miles. This is a risk because CPLP will need to re-charter its vessels coming up for charter renewal in this weakened market environment, according to Moody’s.

Share this article

Follow World Maritime News

In Depth>


<< Mar 2018 >>
26 27 28 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Singapore Maritime Technology Conference and Exhibition (SMTC) 2018

The 3rd Singapore Maritime Technology Conference and Exhibition (SMTC) 2018 is organized by the Maritime and Port Authority of Singapore…

read more >

Shippax Ferry Conference 2018

The two-day onboard ferry conference was first organized in 2003 and grows ever more popular with some 400 delegates from over 40 ferry…

read more >

8th Dredging & Land Reclamation World Summit 2018

The 8th Dredging and Land Reclamation Summit 2018 will gather the decision makers from Authorities and Operators responsible for ports…

read more >

Shipping 360

This course is ideal for those who have recently joined the maritime sector and those who need to have a better understanding…

read more >