Moody’s reviews Global Liman for trim

Moody’s Investors Service said it placed on review for downgrade the B2 corporate family rating and the B2-PD probability of default rating of Global Liman Isletmeleri AS., which is owned by Global Ports Holding plc. Moody’s also placed on review for downgrade the B2 instrument rating on the $250 million senior unsecured notes due 2021 sold by the company.

The review follows the reporting of the company’s nine-month results, which indicate a deterioration in Global Liman’s earnings mostly due to a decline in throughput in the commercial segment, with container volumes down 15% and general cargo volumes down 50% in the nine months to September. While some of the deterioration in volumes has been offset by other revenue initiatives and growth in the cruise segment, the company’s cash flow has weakened, with reported EBITDA falling by 7% to $64 million for the nine months ending September, the agency said.

“Given reduction in earnings, which was greater than previously anticipated by Moody’s, Global Liman’s credit metrics are likely to weaken to the levels that would no longer be commensurate with the B2 ratings, with uncertainty around the recovery in the company’s financial profile over the medium term and ahead of its bond maturity in 2021. In this context, further pressure on Global Liman’s credit quality comes from the acquisitive strategy of the wider GPH group and the expected increase in the group’s debt as a result of the recently completed acquisitions in the cruise segment – Nassau and Antigua,” said Moody’s in a press release.

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