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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Navios Maritime Partners L.P.
Global Credit Research - 02 Sep 2020
London, 02 September 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Navios Maritime Partners L.P. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Navios Maritime Partners L.P.'s (NMM) B2 corporate family rating (CFR) reflects (1) the company's low financial leverage compared with its peers; (2) its low operating costs, resulting from the fleet management contract signed with Navios Shipmanagement Inc. (NSM), an entity controlled by Angeliki Frangou, the chairman and CEO of Navios Group; (3) its relatively small size with some customer concentration; (4) its modest dividends and significant investment in Navios Maritime Containers L.P. (NMCI); and (5) the inherent volatility of the dry bulk shipping business, which experienced both multiyear highs and lows since the beginning of 2019.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Shipping Industry published in December 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Tobias Wagner, CFA VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Peter Firth Associate Managing Director Corporate Finance Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454
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