Research Update: Shipping Co. Navios Maritime Partners Upgraded To 'BB' On Enhanced Diversity And Profitability; Outlook Stable

The credit profile of Marshall Islands-registered Navios Maritime Partners L.P. (Navios Partners) will continue benefiting from a large and diversified vessel fleet, medium-term time charter coverage, and an EBITDA base that should expand to about $800 million-$850 million in 2023, exceeding 2021 levels by close to 2.0x. We forecast that solid EBITDA-to-operating cash flow conversion will help Navios Partners achieve sustained S&P Global Ratings-adjusted funds from operations (FFO) to debt of more than 25%, notwithstanding a significant step up in capital expenditure for new ships this year and the next. Therefore, we raised our long-term issuer credit rating on Navios Partners to 'BB' from 'BB-'. The stable outlook reflects our forecast of sustained positive discretionary cash flow in the next

...- The credit profile of Marshall Islands-registered Navios Maritime Partners L.P. (Navios Partners) will continue benefiting from a large and diversified vessel fleet, medium-term time charter coverage, and an EBITDA base that should expand to about $800 million-$850 million in 2023, exceeding 2021 levels by close to 2.0x. - We forecast that solid EBITDA-to-operating cash flow conversion will help Navios Partners achieve sustained S&P Global Ratings-adjusted funds from operations (FFO) to debt of more than 25%, notwithstanding a significant step up in capital expenditure for new ships this year and the next. - Therefore, we raised our long-term issuer credit rating on Navios Partners to '##' from '##-'. - The stable outlook reflects our forecast of sustained positive discretionary cash flow in the next 12 months, enhancing Navios Partners' financial flexibility for potential fluctuations in EBITDA, further opportunistic ship acquisitions, or unforeseen operational setbacks....

Research Update