S&P Assigns ‘BB’- Rating to Cenargo International

London, June 9/PRNewswire – Standard & Poor’s today assigned its double- ‘B’- minus corporate credit rating to Cenargo International Ltd. (Cenargo) and also expects to rate the company’s proposed Rule 144A $175 million senior secured notes at double- ‘B’- minus. The outlook is stable.

The rating reflects the worse-than-average industry characteristics and an aggressive capital structure, but benefits from the company’s established market position on the Irish Sea freight ferry market and the introduction of two brand new “Roll-On Passenger” (Ropax) ferries, which Cenargo was able to order at favorable terms in Spain. The proceeds of the proposed bond issue will be used to repay existing bank debt, as well as to finance the building of two new RoPax ferries to be delivered in mid-1998. In addition, Cenargo has put in place a $100 million secured ship construction finance facility which will enable it to order a further two new RoPax ferries from the same yard in Spain for delivery in 2000.

This is only an excerpt of S&P Assigns ‘BB’- Rating to Cenargo International

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.