Moody's lowers Navios Maritime

Moody's Investors Service said it downgraded the rating of the term loan B due 2020 issued by Navios Maritime Midstream Partners LP to B3 from B2 and withdrew its B2 corporate family and B2-PD probability of default ratings.

The downgrade concludes the review of Navios Maritime's ratings.

Moody's also said it affirmed the corporate family rating of Navios Maritime Acquisition Corp. at B3, probability of default rating at B3-PD and the rating on its $670 million senior secured notes due 2021 at B3.

The outlook is negative.

The downgrades follow news that the acquisition of the publicly held units of Navios Maritime has been completed by Navios Maritime Acquisition in a stock-for-units exchange, Moody's said.

The downgrades also consider the company's position as a wholly owned subsidiary of a larger entity and the resulting increase in the combined pro forma leverage to close to 12x from less than 4x, the agency said.

Navios Maritime also considers the diverse and modern fleet with a mix of crude oil and product tankers, low operating costs and the company's leveraged capital structure with a debt-to-EBITDA ratio at close to 18x for the 12 months ending Sept. 30, 2018, Moody's said.

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