Moody's gives LimakPort notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed $360 million of senior secured notes to be issued by Limak Iskenderun Uluslararasi Liman Isletmeciligi AS (LimakPort). The outlook is stable. This ratings is Moody’s first for LimakPort.

The B3 rating positively reflects Iskenderun port's role as a gateway for Turkish international trade, with a balanced mix of imports and exports, and fairly good product diversification, the port's competitive position, given its proximity to some of the main industrial centers in southeast Turkey and competitive costs of transport, coupled with the port's competitive tariffs among other factors.

The advantages are offset, however, by LimakPort's exposure to Turkey's political, legal, fiscal and regulatory environment, a fairly high level of competition, including from Mersin port and Assan port, with the potential for competitive dynamics to change as Mersin seeks to expand capacity and Iskenderun's location near the Syrian border, among other factors.

The proceeds will be used to refinance LimakPort's senior secured debt, pay down some but not all the shareholder loans, pay transaction fees and pre-fund reserve accounts as required under the terms of the proposed notes.

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