Moody's has upgraded Navios Maritime Partners.
Citing a strengthening dry bulk market and improving charter rates, the ratings agency bumped the Angeliki Frangou-led shipowner's corporate family rating up a level, from B3 to B2.
"The dry bulk market has come back strongly from a historical low in 2016. The Baltic Dry Index ... increased by more than 5x in October 2018 from its historical low in February 2016," Moody's said.
Moody's also praised the New York-traded company's moves to extend existing charters alongside five containerships chartered until 2023, plus $58m in cash.
The agency does not expect to upgrade Navios further. A downgrade could come if free cash flow comes out negative after maintenance and dividends.
The rating bump comes as Navios works on spinning off its boxship business. The company announced this week that Navios Partners shareholders will receive 2.5% of the outstanding equity in Navios Containers next month, should they get the OK from the Securities and Exchange Commission.
