Moody's rates Itapoa debentures Ba2

Moody's Investors Service said it assigned first-time corporate family ratings of Ba2 and Aa3.br to Itapoa Terminais Portuarios SA.

The outlook is stable.

The agency also said it assigned Ba2 global scale and Aa2.br national scale ratings to Itapoa's third issuance of senior secured debentures in the amount of R$300 million due 2027.

The proceeds of the issuance, in conjunction with a R$150 million pari passu loan granted by the Inter-American Development Bank, will be used to redeem R$314 million of existing debt, fund certain capital expenditures related to the port's recent expansion, fund a dividend distribution of R$50 million and support the company's working capital position, Moody's said.

The debentures and the loan share the security and collateral package composed of a mortgage over land, a share pledge agreement, pledge of certain equipment, rights over cash accounts and insurance reimbursements, the agency said.

The ratings reflect the port's medium size and scale, adequate operational profile, high end-customer diversification and strong credit metrics, Moody's said.

It further recognizes the completion of the port's capacity expansion in August 2018, which will allow for volume growth, the agency said.

But the ratings also consider the high dependence on the relationship with specific ship liners, highly competitive environment and important capacity expansions in competing ports, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.