HALISTER1: Stena Liquidity May Become Tight If No New Financing in ’17: JPM

Stena Liquidity May Become Tight If No New Financing in ’17: JPM

(Bloomberg) -- Stena’s liquidity may be tight if co. doesn’t issue new financing next year, but it has sufficient means to repay a EU300m bond maturing in Feb., Danielle Ward, analyst at JPMorgan, writes in client note.
  • Including vessel financing/other debt, Stena has SEK9.3b debt maturing across 2017-2018
  • Believes that credit metrics will begin to deteriorate significantly in next 12-18 months as drilling contracts roll off from this summer
  • Downside risks continue to outweigh upside, particularly after recent rally in spreads; 5Y CDS -4.5pts in April
  • Reiterates underweight rating; says downgrade at Moody’s “strong possibility” in near-term
  • NOTE: Stena has EU3.62b equivalent of debt outstanding, with EU436m maturing next year, Bloomberg data show
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
1081Z SS (Stena AB)

People
Danielle Ward (JPMorgan Chase Bank NA)

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