S&P puts Navios Maritime Midstream on watch

S&P said it placed its B issuer credit rating on Navios Maritime Midstream Partners LP on CreditWatch with negative implications.

At the same time, S&P placed its B issue rating on the company's senior secured debt on CreditWatch negative. The recovery rating is unchanged at 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 65%) in the event of a default.

“The CreditWatch placement indicates that we could downgrade Navios Midstream after the transaction closes because that would likely lead to higher financial leverage than is commensurate with the current B rating. Navios Midstream recently announced that it had received a proposal from the lower-rated Navios Maritime Acquisition Corp. to acquire its remaining shares in a stock-for-unit exchange,” S&P said in a news release.

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