Moody's rates Mersin bonds Baa3

Moody's Investors Service said it assigned its definitive Baa3 senior unsecured rating to the $450 million senior unsecured 5 7/8% bond due August 2020 issued by Mersin Uluslararasi Liman Isletmeciligi AS.

The outlook is stable, in line with that of Mersin's senior unsecured issuer rating.

Moody's said the rating on the bond is the same as the issuer rating, and reflects the senior unsecured nature of the bonds. The bonds contain limited covenants, the most significant of which is a 12-month backward looking consolidated net debt to EBITDA ratio test, which limits the total amount of debt to 3.5x, falling to 3.0x in August 2017 and beyond.

Breach of this test will result in a lock up of dividends and a restriction on payment of subordinated debt and other equity interests, the agency said.

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