Research Update: Port Operator Euroports 'BB-' Rating Affirmed On Sufficient Resilience Against COVID-19 Disruptions; Outlook Stable

We believe EP Bco's (Euroports') port terminal business, which generated €62 million in reported EBITDA in 2019, will demonstrate more resilience to COVID-19 disruptions than other infrastructure assets such as airports and toll roads. We anticipate its credit metrics will remain commensurate with the ratings, notably funds from operations (FFO) to debt staying higher than 7% on average over 2020-2022. That said, ratings headroom remains tight. We continue to rate Euroports up to two notches higher than our assessment of Monaco Resource Group's (MRG's) credit quality. We are therefore affirming our 'BB-' long-term issuer credit rating on Euroports. We are also affirming our 'BB-' and '3' recovery ratings on its first lien term loan and revolving credit facility (RCF), and

...- We believe EP Bco's (Euroports') port terminal business, which generated 62 million in reported EBITDA in 2019, will demonstrate more resilience to COVID-19 disruptions than other infrastructure assets such as airports and toll roads. - We anticipate its credit metrics will remain commensurate with the ratings, notably funds from operations (FFO) to debt staying higher than 7% on average over 2020-2022. That said, ratings headroom remains tight. - We continue to rate Euroports up to two notches higher than our assessment of Monaco Resource Group's (MRG's) credit quality. - We are therefore affirming our '##-' long-term issuer credit rating on Euroports. We are also affirming our '##-' and '3' recovery ratings on its first lien term loan and revolving credit facility (RCF), and our 'B' issue and '6' recovery ratings on its second lien term loan. - The stable outlook reflects our view that the company benefits from key client relationships and diversified commodity exposures. This should...

Research Update