Navios Maritime Partners L.P.

The stable outlook reflects our view that dry bulk charter rates will gradually recover over the next 12 months. This will allow Navios Partners to maintain the rating-commensurate credit metrics, underpinned by its medium-term time-charter profile and competitive cost structure. Given the shipping sector's inherent volatility, we view the company's maintenance of adequate liquidity coverage with sources-to-uses of at least 1.2x in the upcoming 12 months, and manageable loan-to-value (LTV) covenant compliance tests, supported by available ample cash for early debt prepayments to ensure compliance if needed, as important contributors to a stable outlook. We would downgrade Navios Partners if it fails to refinance the bullet bank loans due third-quarter 2021 in a timely manner, which we consider at least

...S&P Global Ratings expects rating-commensurate credit measures for Navios Maritime Partners L.P. despite sluggish charter rates lagging behind 2018 and 2019 averages. We forecast that softer charter rates, in particular for drybulk shipping, will hold back Navios Partners' adjusted EBITDA at $100 million-$105 million in 2020, below about $114 million in 2019. This moderate EBITDA decline will be offset by lower debt after scheduled debt amortization and repayments, such that adjusted funds from operations (FFO) to debt will be largely unchanged at 16%-17% in 2020, compared with about 16% in 2019; and adjusted debt to EBITDA at about 4.5x in 2020, compared with 4.4x in 2019. In 2021, we expect that a gradual upturn in charter rates will prop up EBITDA generation toward $120 million-$130 million, which, combined with gradually amortizing debt from free operating cash flow, will help improve credit measures and headroom under the 'B+' rating. Our expectation of timely refinancing underpins...

Full Report