Moody's affirms Atlantic Marine

Moody's Investors Service said it affirmed Atlantic Marine Holding Co.'s B2 corporate family rating, its B3 probability-of-default rating and its B2 (LGD3, 36%) $45.0 million first-lien revolving credit facility due 2013 and $185.1 million first-lien term loan due 2014.

The outlook is stable.

The agency said the affirmation follows a recently amended tanker fabrication contract between Atlantic Marine and a large customer, which resolved work delays that were clouding near-term earnings prospects; an expectation of sustained adequate covenant headroom under the company's bank credit facility; and an expectation that, despite economic weakness, the company's backlog levels should not significantly decline as pending bids hold promise for maintaining utilization levels.

Atlantic Marine's B2 corporate family rating reflects the company's small size, dependence on large ship repair and fabrication contracts and the risk associated to sales and gross profit from contract concentration, a moderate leverage profile, recent history of debt-funded dividends and limited free cash flow generation, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.