Fitch cuts First Ship Lease

Fitch Ratings said it has downgraded First Ship Lease Trust's long-term issuer default rating to B- from B.

The outlook is stable.

According to the agency, the downgrade reflects weakness in the company's portfolio asset quality following defaults by two lessees, Geden Holdings and OMNI Ships, in 2013, which resulted in a decline in revenue and EBITDA.

First Ship Lease had been in discussion with its lenders since September 2013 to negotiate a further set of covenant relaxation terms, the agency stated.

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