Moody’s trims Euroports

Moody's Investors Service said it trimmed the corporate family rating and the probability of default rating of EP BCo SA (Euroports) to B1 from Ba3 and to B1-PD from Ba3-PD, respectively.

The agency also downgraded the ratings of Euroports' €365 million senior secured first-lien term loan and €45 million revolving credit facility to Ba3 from Ba2 and the rating of the €105 million senior secured second-lien term loan to B3 from B2.

“The downgrade of the CFR to B1 from Ba3 reflects Euroports' continued high leverage and failure to deliver improvements to its funds from operations (FFO) generation such that the FFO/debt metric would likely reach the level commensurate with a Ba3 rating, namely FFO/debt of at least at 10% on a sustainable basis. In 2020 Euroports reported an FFO/debt ratio of around 8%, and Moody's expects that ratio will remain below 10% over at least the next 12-18 months,” the agency said in a press release.

The outlook is negative.

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