Moody’s trims Navios Acquisition

Moody’s Investors Service said it downgraded the corporate family rating of Navios Maritime Acquisition Corp. to Caa1 from B3 and probability of default rating to Caa2-PD from B3-PD. Concurrently, Moody’s lowered the senior secured first-lien notes due 2021 co-issued with Navios Acquisition Finance (US) Inc. to Caa1 from B3.

The agency also changed the outlook to negative from ratings under review. This action concludes the review started on May 21, Moody’s said.

“The rating action reflects the significant debt maturities in the next 12 months, including the senior secured first-lien notes due in November 2021 as well as the continued weak market environment and resulting high expected Moody’s-adjusted debt EBITDA in 2021 if the market environment persists. The Caa2-PD also reflects the execution risk linked to the refinancing, including the risk of a distressed exchange, for example in the form of debt buy-backs,” the agency said in a press release.

The outlook reflects the uncertainty regarding the refinancing as well as the weak tanker market environment, Moody’s said.

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