Research Update: EP Bco S.A. 'BB-' Ratings Affirmed On Solid Performance And De-Linkage From Parent; Outlook Remains Negative

EP Bco S.A., the nonoperating holding company of international port infrastructure operator Euroports Holdings S.a.r.l. (Euroports), continues to deliver solid performance, supported by increasing demand for commodities and a boost in freight forwarding, resulting in our expectation that S&P Global Ratings-adjusted debt to EBITDA could decline toward 6x at year-end 2022, from 6.6x in 2021. Significant credit stress at an affiliate of EP Bco's majority shareholders, Cycorp First Investment Ltd. (Cycorp) has not tangibly affected EP Bco's credit quality, and we expect minority shareholders (sovereign wealth funds PMV and FPIM; 23.3% stakes each) to continue acting as a counterweight to potential negative intervention from the group based on effective decision powers under the shareholder agreement. We anticipate the company's leverage

...- EP Bco S.A., the nonoperating holding company of international port infrastructure operator Euroports Holdings S.a.r.l. (Euroports), continues to deliver solid performance, supported by increasing demand for commodities and a boost in freight forwarding, resulting in our expectation that S&P Global Ratings-adjusted debt to EBITDA could decline toward 6x at year-end 2022, from 6.6x in 2021. - Significant credit stress at an affiliate of EP Bco's majority shareholders, Cycorp First Investment Ltd. (Cycorp) has not tangibly affected EP Bco's credit quality, and we expect minority shareholders (sovereign wealth funds PMV and FPIM; 23.3% stakes each) to continue acting as a counterweight to potential negative intervention from the group based on effective decision powers under the shareholder agreement. - We anticipate the company's leverage could remain below 6.5x in 2023-2024, although we will continue to monitor for possible negative deviations from our base case due to commodity volatility,...

Research Update