S&P affirms Navios on add-on

Standard & Poor's said it affirmed the B+ ratings on Navios South American Logistics Inc. and its 9¼% bond due 2019.

The ratings were affirmed after news of the company's $75 million add-on to its $200 million bond, which will allow the company to continue expanding its operations, S&P said.

The company said it will use the proceeds for higher capital expenditures, including the purchase of new convoys, the agency said.

The outlook is stable.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, S&P said.

Navios Logistics operates in a cyclical business and is exposed to volatile commodity prices, weather conditions and risky jurisdictions, such as Argentina and Paraguay, the agency said.

The mitigating factors are the company's conservative policies and operating efficiencies, S&P said.

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