Research Update: Shipping Co. Navios Maritime Partners Upgraded To 'BB-' On Navios Maritime Containers Acquisition; Outlook Positive

Marshall Islands-registered Navios Maritime Partners L.P. (Navios Partners) has completed the acquisition of Navios Maritime Containers (Navios Containers) in an equity-swap transaction, which added 29 containerships to its fleet (expanding it to 89 dry bulkers and containerships in total). The acquisition, combined with Navios Partners' existing ships, provides the company with larger scale and diversity along with a longer duration time charter (T/C) profile. Furthermore, we believe that favorable charter rate conditions will continue and underpin Navios Partners' capacity to lower debt from excess cash flows, while achieving sustained S&P Global Ratings-adjusted funds from operations (FFO) to debt of at least 30%. Therefore, we raised our long-term issuer credit rating on Navios Partners to 'BB-' from 'B+'. The positive outlook

...- Marshall Islands-registered Navios Maritime Partners L.P. (Navios Partners) has completed the acquisition of Navios Maritime Containers (Navios Containers) in an equity-swap transaction, which added 29 containerships to its fleet (expanding it to 89 dry bulkers and containerships in total). - The acquisition, combined with Navios Partners' existing ships, provides the company with larger scale and diversity along with a longer duration time charter (T/C) profile. - Furthermore, we believe that favorable charter rate conditions will continue and underpin Navios Partners' capacity to lower debt from excess cash flows, while achieving sustained S&P Global Ratings-adjusted funds from operations (FFO) to debt of at least 30%. - Therefore, we raised our long-term issuer credit rating on Navios Partners to '##-' from 'B+'. - The positive outlook reflects that we could raise the rating if industry momentum persists and allows Navios Partners to re-charter its ships at rates consistent with (or...

Research Update