Amer Reefer Asgnd B+ Rtg By S&P;Outlook Stable.LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 2/9/98-- Standard & Poor's today assigned its single-'B'-plus corporate credit rating to Amer Reefer reef·er n. Marijuana, especially a marijuana cigarette. Co. Ltd. It also expects to rate the company's proposed Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. senior secured notes at single-'B'-plus. The ratings are based on a moderate fleet size, the worse-than-average industry characteristics, and an aggressive capital structure, but they benefit from long-term charters and efficient low-cost operations. Amer Reefer is part of the Foresight Group (shipping and oil drilling), controlled by the Indian Mehrotra family. Amer Reefer has a modern fleet of four refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. vessels (reefer vessels). After completion of the note offering, the company intends to purchase three additional second-hand vessels. The moderate fleet size is a rating concern as the vessels may develop unexpected mechanical and operational problems. While ownership of dedicated reefer vessels is highly fragmented, day-to-day control of the world fleet is concentrated in the hands of a few operators, primarily reefer pools. This market concentration explains partly why freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight have been relatively stable by shipping standards (more seasonal, but less cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. ). Amer Reefer's strategy is to enter into long-term charter contracts with established reefer pools (three of its vessels are chartered to Cool Carriers) and commodity exporters, which reduces the group's exposure to freight-rate volatility. Amer Reefer's efficient, low-cost operations is explained partly by the company's modern fleet of efficient vessels with similar dimensions and design characteristics. Amer Reefer's capital structure will be aggressive following the expected acquisitions, with total debt leverage of about 80% (based on book value). Earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) coverage of interest could decrease to slightly below 2 times (x) in the short term from above 3x as total debt increases. OUTLOOK: Stable. Amer Reefer is not expected to continue to pursue its debt-financed growth strategy until it has strengthened its balance sheet by reducing debt to capitalization, Standard & Poor's said. -- CreditWire CONTACT: Peter Nilsson, Stockholm (46) 8-440-5913 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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