Fitch rates Global Ports notes BB

Fitch Ratings said it assigned Global Ports (Finance) plc's (GPI Finance) proposed $350 million notes an expected senior unsecured rating of BB(EXP) with negative outlook.

GPI Finance is a fully owned subsidiary of Global Ports Investments plc (BB-/ negative).

GPI Finance will issue $350 million fixed-rate notes, which will be unconditionally and irrevocably guaranteed on a joint and several basis by Global Ports and its three major operating subsidiaries (opco) First Container Terminal Inc., JSC "Petrolesport" and Vostochnaya Stevedoring LLC, representing 99% of consolidated EBITDA.

Global Ports intends to use the bond proceeds to refinance bank loans raised at opco levels.

Global Ports’ consolidated leverage therefore will not increase as a result of the transaction, Fitch said.

The notes' BB(EXP) rating reflects the agency’s assessment of Global Ports’ consolidated credit profile as the unconditional and irrevocable guarantee from the three major opcos give bondholders full and unconditional access to group cash flow generation.

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