David Epstein, a bond analyst at CRT Capital, applauded the US-quoted owner’s efforts to cut capital expenditures by $101m but doesn’t believe the move will have a significant impact on net asset value as his earlier assessments assumed the suezmax duo to be worth around $50m each.
“We believe this news is a positive for the credit overall, though, as the market had been worried how the company would finance the spending commitment,” he said, adding: “We believe it is also a credit positive in the sense that many investors are worried that ship values will fall further, and this slightly lessens the exposure to ship values.”
Michael
