Italian ferry group Moby is in danger of breaching a leverage covenant, according to S&P Global Ratings.
The ratings agency said it expected 2017 EBITDA generation to weaken at the Vincenzo Onorato-controlled ro-pax company due to increased fuel prices and higher-than-anticipated costs related to the opening of new routes in Sicily, France and the Nordic region.
As a result, it believes Moby will be "at risk of breaching its net leverage financial covenant on its senior secured banking facilities in both December 31, 2017 and December 31, 2018, when the test level will step down to 3.5x."
