Moody’s applies B3 to Exalmar notes

Moody's Investors Service said it assigned a B3 rating to Pesquera Exalmar, SAA's $60.9 million senior unsecured notes due 2025.

Proceeds were used to refinance existing debt.

The outlook is stable.

Moody’s said the B3 ratings incorporate primarily Exalmar's vulnerability to climatic conditions and fishing quotas regulation; a pronounced cash flow seasonality; and its limited operating scale and modest business diversification compared to regional peers as well as other seafood and protein-industry companies.

“The rating also reflects the exposure to volatile volume and price trends of the commoditized global fishmeal and fish oil market,” the agency said in a news release.

“These credit negatives are to some extent offset by Exalmar's position as the third largest fishmeal producer in Peru, the world's leading fishmeal nation; a successful operating history in its current business configuration; and some revenue diversification from its direct human consumption business.”

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