Moody’s Investors Service has initiated coverage of Nasdaq-quoted owner, which was stamped with a corporate family and probability of default rating of “B2”.
The agency issued the same grade for the Athens-based operator’s bonds, which will be secured by 11 vessels and mature in 2022.
“Concurrently, Moody's has assigned a provisional B2 rating, with a loss given default assessment of LGD4,50% to the proposed $260m worth of senior secured notes,” it said.
The firm, which pointed out that this is the first time it has assigned a grade to CPP, described its ratings outlook as “stable”.
Analyst Marie Fischer-Sabatie said her findings reflects the owner’s size, elevated leverage and “high reliance” on sponsor Capital Maritime & Trading Corp (CMTC).
“At the same time, we also considered [CPP's superior] revenue visibility, good fleet diversity and currently limited re-pricing risk," she added.
Moody’s pointed out that CPP has chartered nearly a dozen vessels to CMTC, which makes it the company’s largest customer.
“[It is also the manager of [CPP's] fleet,” the agency continued. “As CMTC is a privately owned company, there is limited available information on the company, although Moody's understands that CMTC is operating with limited net debt.”
