The company says there was no justification for maintaining agency ratings and associated costs after restructuring debt through bond repayments and bank financing.
Navigator decided to waive the rating agencies Standard & Poor’s and Moody’s because it considered that it was no longer justified to maintain the ratings assigned by the two agencies and the associated costs, following the restructuring of its financial debt carried out in recent years
This is due to the fact that the paper company led by João Castello Branco made, in 2015 and 2016, the repayments of the bonds maturing in 2020 and that they had been placed on the market. On the other hand, it contracted new financing from national and international banks, “with a significant reduction in costs and extension of maturities”.
In other words, with this restructuring, the company in the paper sector exchanged the debt it had issued on the market, which implies having a risk assessment by the rating agencies, for debt contracted with banking institutions.
For this reason, Navigator “decided that it was not justified to maintain the rating assigned by Standard & Poors and Moody’s and the associated costs”, it reported in a communiqué issued on Monday by the Portuguese Securities Market Commission (CMVM).