Fitch says affirms Global Ports’ rating at BB+, outlook Stable

MOSCOW, Jul 2 (PRIME) -- International rating agency Fitch has affirmed the long-term issuer default rating of Russian stevedore company Global Ports in national and foreign currencies at BB+ with a Stable outlook, the agency said in a statement on Friday.

The affirmation reflects Fitch’s expectation that the company’s ratio of adjusted net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) will exceed 2.0x in 2021–2025. The credit portfolio of Global Ports is advantageous as the company is reducing the share of debt while generating a strong cash flow. Ii has enough liquidity to satisfy short-term needs and hedge foreign currency risks.

Global Ports dominates the Russian container market, even though competition is high. An upgrade of the rating is unlikely, but if the net debt to EBITDA ratio falls below 2.0x, a positive rating action may follow. But if the ratio grows above 3.5x and operating cash flows shrink, the agency may downgrade the rating.

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