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Forumer storico
Announcement of Periodic Review:
Moody's announces completion of a periodic review of ratings of Moby S.p.A.
07 Oct 2019
Paris, October 07, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Moby S.p.A. 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.
Moby S.p.A.'s (Moby) Caa3 corporate family rating (CFR) primarily reflects liquidity concerns as the company faces material mandatory debt repayments and some potential significant cash outflows over the next 12 months, which could result in a debt restructuring or a distressed exchange in Moody's view. The rating also reflects the uncertainty around the company's plan and ability to comply with the upcoming International Maritime Organization's (IMO) 2020 lower global sulfur cap on marine fuel. The CFR also incorporates (1) the company's narrow geographic scope, (2) its high exposure to fuel price volatility albeit mitigated by our expectations of modest fuel prices volatility in the next 12 months, (3) its very high leverage and negative free cash flow generation, and (4) its aggressive corporate governance practices. More positively, the CFR is supported by (1) the company's well-established market positioning; and (2) some revenue visibility, underpinned by government contracts.
On 19 September, Moby announced its intention to dispute the insolvency proceeding brought by some bondholders before the Court of Milan. While the outcome of this insolvency proceeding is uncertain, this development adds further legal pressure on the company, which is already caught in several investigations.
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.
Moody's announces completion of a periodic review of ratings of Moby S.p.A.
07 Oct 2019
Paris, October 07, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Moby S.p.A. 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.
Moby S.p.A.'s (Moby) Caa3 corporate family rating (CFR) primarily reflects liquidity concerns as the company faces material mandatory debt repayments and some potential significant cash outflows over the next 12 months, which could result in a debt restructuring or a distressed exchange in Moody's view. The rating also reflects the uncertainty around the company's plan and ability to comply with the upcoming International Maritime Organization's (IMO) 2020 lower global sulfur cap on marine fuel. The CFR also incorporates (1) the company's narrow geographic scope, (2) its high exposure to fuel price volatility albeit mitigated by our expectations of modest fuel prices volatility in the next 12 months, (3) its very high leverage and negative free cash flow generation, and (4) its aggressive corporate governance practices. More positively, the CFR is supported by (1) the company's well-established market positioning; and (2) some revenue visibility, underpinned by government contracts.
On 19 September, Moby announced its intention to dispute the insolvency proceeding brought by some bondholders before the Court of Milan. While the outcome of this insolvency proceeding is uncertain, this development adds further legal pressure on the company, which is already caught in several investigations.
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.
