Boluda's Kotug Smit takeover could increase cashflow 'volatility'

Ratings agency Fitch has said Spanish group Boluda Towage's takeover of Kotug Smit Towage (KST) could increase cashflow "volatility".

The company paid EUR 300m ($340m) in March for the joint venture business.

Fitch has a BB rating on Boluda Towage, with a stable outlook.

It said the takeover will boost its international diversification, but increase "the historically moderate cash flow volatility", as KST operates in large Northern European ports with material exposure to competition.