S&P downgrades Moby

S&P said it lowered its long-term issuer credit rating on Moby SpA to CCC+ from B. The outlook is stable.

At the same time, the agency lowered its issue rating on Moby's senior secured debt by two notches to B- from B+. The recovery rating is unchanged at 2, indicating an expectation of substantial recovery (70%-90%; rounded estimate: 85%) for the secured lenders in the event of a payment default.

“The downgrade reflects our revised reported EBITDA forecast for 2018 at €75 million-€80 million, compared with our previous forecast of €109 million, after EBITDA underperformance in first-half 2018. Furthermore, we do not anticipate any major EBITDA upside in 2019, because of fierce competition on Moby's core ferry routes,” S&P said in a news release.

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